VC Adventure
MAY 5, 2022
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.
Both Sides of the Table
MAY 27, 2013
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. Send Text messaging for rapid responses.
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David Teten
JANUARY 19, 2021
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.
David Teten
SEPTEMBER 23, 2017
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.
Both Sides of the Table
MAY 23, 2012
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.
David Teten
MARCH 2, 2013
Moreover, VC funds on average earn approximately 2/3 of their revenue from fixed fees. He surmises that LPs aren’t buying the argument that large funds don’t perform. Just think about it: if the fund size never expands, the only way for new LPs to enter is if others drop out. But why would any LP ever drop out of such a fund?
David Teten
DECEMBER 3, 2019
Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. We are also seeing technology evaluation as an increasingly important part of LP operational due diligence. See their blog post on multiples.).
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