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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. The first will be commodity businesses that are valued for their ability to execute their current businessmodel.
It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. You want someone who will challenge you and be an intellectual sparring partner.
It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. You want someone who will challenge you and be an intellectual sparring partner.
It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. You want someone who will challenge you and be an intellectual sparring partner.
(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.
When you take money from investors their businessmodel becomes yours. Sigh… What I should have been hearing is the search for the businessmodel, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. Who are the partners? What is an IRR?
When you take money from investors their businessmodel becomes yours. Sigh… What I should have been hearing is the search for the businessmodel, specifically the progress on product/market fit, but I hear the fund raising story first at least 90% of the time. Who are the partners? What is an IRR?
His latest venture, Bharosa, was sold to Oracle for a 6X multiple in 3 years to his angel investors, a sweet close to triple digit IRR. I take CFO roles in early stage companies and participate on the management team during the early financings and businessmodel development phases.
A partner from the law firm (sponsor, covers the drinks and food) tosses out some softball questions to the panelists, the audience chimes in with Q&A and finally, culminates with the meet and greet where the panelists are flooded with business cards and pitches on the next great thing, which is often very similar to the last great thing.
The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Focus on lower-risk businessmodels; no requirement for a ‘swing for the fences’ model. Remember, VCs are comfortable with the venture debt model already. But this isn’t really a problem.
If an investor could have identified Salesforce’s ability to maintain such prolonged growth upfront, invested in its 2004 IPO, and then held on through to today, they could have made ~70x returns: equivalent to ~30% IRRs over a 16 year period. Not too shabby! Ultimately, determining a valuation is a delicate balance between many factors.
Blue Future Partners, a venture capital fund of funds, recently interviewed me on ESG in venture capital. The Boston Consulting Group and MassChallenge , a US-based global network of accelerators, partnered to study why “ women-owned startups are a better bet ”. Invest in businessmodels that otherwise could not access VC.
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