Remove LP Remove Metrics Remove Portfolio Remove Revenue
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IRR is a vanity metric

VC Adventure

I’m observing that IRR is a metric that is becoming an increasing focus in venture, replacing fund return multiple as the key metric of success. I understand the draw of IRR, and – as a fund draws to a close – there’s no question it’s an important metric. management fee). Venture is a long game.

IRR 116
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8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. VCs crave the ability to help portfolio companies.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. “Too Of the Inc. 5000 companies, only 6.5% raised from angels.

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. Over the past few decades, better metrics became available, and investors could take a more analytical, data-driven approach. ” Historically, investing was a manual, artisan process. 9% (1 / 12).

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and.

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It’s Morning in Venture Capital

Both Sides of the Table

Thomson Reuters data shows that around $10 billion of LP money went into VCs per year pre bubble. By 2000 the total LP commitments had mushroomed to more than $100 billion. LP contributions to VC firms shrunk from 2000 and by 2005-2008 had stabilized to around $30 billion per year. The Funding Problem.

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On Geography

K9 Ventures

” Now that last statement is a little off, since I have a portfolio company in Berkeley and one as far south as San Jose. And, even though I do enjoy meeting up with the founders in my portfolio for lunch every couple of months, the majority of the interactions with my portfolio founders still happens over email or phone.