Remove Business Model Remove IRR Remove Technical Review
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59   (If you plug in an IRR of 58.5%   Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10 Reflections After 10 Years of NextView

View from Seed

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 205
article thumbnail

10 Reflections After 10 Years of NextView

View from Seed

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 156
article thumbnail

10 Reflections After 10 Years of NextView

View from Seed

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 136
article thumbnail

ESG in Venture Capital: Interview with Blue Future Partners (VC Fund of Funds)

David Teten

Here’s what I said: In your career in tech and VC, how has your focus on ESG responsibility changed over time? One of the impact initiatives I’m proudest of is founding Harvard Business School Alumni Angels of New York , a nonprofit and now the East Coast’s largest angel group. I quickly recruited a board of experienced hands.