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. Intel under their last two CEOs delivered more revenue and profit than any ever before. On the low-end, they undercut cost structures, resulting in customer migration.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

David Teten

NOVEMBER 17, 2011

In my previous life as an investment banking analyst at Citi (Latin America industrials group), we used to spend hours deriving the appropriate weighted average cost of capital (WACC) for a particular company. We used to take medians and means of unlevered betas of different subsets of comparable companies.

Employee 155

Employee IRR Startup Mexico 155

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.”

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

The Next Web

DECEMBER 16, 2012

This approach is based on the belief that revenue matters most. It calculates value on the bases of revenue that the buyer can expect to earn from the site, taking into account the risks that are involved in operating it. Primary drivers include site revenue and site usage. The quality, reliability and cost of site traffic.

Valuation 128

Valuation NPV Net Present Value IRR 128

David Teten

AUGUST 21, 2019

Or should they look to one of the new wave of Revenue-Based Investors? Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. For more background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Lower processing cost.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

crowdSPRING Blog

AUGUST 7, 2011

Cost of capital may increase. The distinct likelihood of higher interest rates means that small business loans will cost more and that credit will be tightened making loans less available to businesses. Businesses large and small will continue to struggle as long as demand is soft and business budgets are constrained.

Small Business 86

Small Business IRR Government United States 86

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR? The same thing happened to many Internet stocks. LIMITED PARTNERS (LPS).

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Growthink Blog

MAY 21, 2014

One reader reference Gust Founder David Rose’s new book - “ Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups ” and to Rose’s main contention that to access the 25% IRR potential of the asset class one must hold positions in not less than 20 companies. He asked, “ Is this practical advice?

San Diego 72

San Diego Warrant IRR Investment Bankers 72

David Teten

NOVEMBER 23, 2020

I highlight endogenous social impact because many of my portfolio companies might give money to charity or provide low-cost pricing to nonprofits, but that’s not what I think of as an impact company; they’re tacking on social impact on top of their core business, whatever that is. . Starship was launched by the co-founders of Skype.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60