.Net Cost IRR 
Steve Blank
MARCH 31, 2014
Metrics like Return on Net Assets, Return on Capital and Internal Rate of Return are the guiding stars of the board and CEO. Unfortunately as we’ve learned from recent experience, using Return on Net Assets and IRR as proxies for efficiency and execution won’t save a company when their industry encounters creative disruption.
Steve Blank
MARCH 4, 2014
These groups are adapting or adopting the practices of startups and accelerators – disruption and innovation rather than direct competition, customer development versus more product features, agility and speed versus lowest cost. For most companies it feels like innovation can only happen by exception and heroic efforts, not by design.
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Steve Blank
JUNE 23, 2016
As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency. On the low-end, they undercut cost structures, resulting in customer migration. The result, Intel just laid off 12,000 people , 11% of their company.
Startup Professionals Musings
APRIL 3, 2012
Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.
This is going to be BIG.
JULY 30, 2015
Second, their dollars dollar cost average at cheaper entry prices. Here's another way to look at it--the cost of capital argument. I'd say no--they're taking money from the same endowments, high net worths and pension funds as everyone else. But what does the model say? 20% of the Seeds get acqu-hired at the 6 post.
Startup Professionals Musings
NOVEMBER 11, 2010
Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). The basics are simple. Expected return rate. Marty Zwilling.
Both Sides of the Table
MAY 19, 2018
A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. These collective sets of documents form the basis of what somebody looking at investing would call “financial due diligence.”
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