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). Successful serial entrepreneurs usually find it easier to raise money from venture capitalists.

IRR 248

IRR Term Sheet Startup Valuation 248

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). Successful serial entrepreneurs usually find it easier to raise money from venture capitalists.

IRR 225

IRR Startup Term Sheet Angel Investor 225

Startup Professionals Musings

MAY 9, 2011

Rose, who has been described as "the Father of Angel Investing in New York" by Crain's New York Business, and a "world conquering entrepreneur" by BusinessWeek. The second company in which I invested, back in 2001, was a novel concept from the serial entrepreneur who invented social networking. David: Absolutely.

New York 221

New York Accredited Investor Advisory Board IRR 221

Professor VC

MARCH 10, 2009

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. In this economy, all entrepreneurs are going to hear a lot of "nos", but time spent going after customers rather than investors should provide a higher return on investment.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

This is going to be BIG.

DECEMBER 28, 2013

If you are a venture capital investor and you''re not preparing yourself to succeed in a more diverse ecosystem of entrepreneurs, you''re just going to get left behind. My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. YC''s best investing days may be behind it. That''s less than 10%.

Venture Capital 162

Venture Capital Cofounder IRR Dilution 162

Up and Running

JUNE 17, 2013

As the session got into open-ended questions, I was surprised, and even shocked, by a frustration shared by several of the entrepreneurs. And Internal Rate of Return (IRR)? If you’re the one telling entrepreneurs they need to show some fantastic return on investment, stop it. I trust my judgment on that.

IRR 71

IRR Flash Angel Investor Venture Capital 71

Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. One group charges entrepreneurs "an administrative fee" to present to the group. Touched by an Angel. return on investment after 3.5

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Feld Thoughts

AUGUST 1, 2018

We are very long-term investors, focusing on net cash on cash returns, rather than short-term or intermediate IRRs. We refer to B and C rounds as early growth – essentially financings with valuations between $50m and $300m pre-money. Our goal is to have significant ownership in companies we are investors in (often over 30%).

Syndicate 17

Syndicate Syndication IRR Canada 17

K9 Ventures

MAY 14, 2011

This is probably the very first group that an entrepreneur who is starting out may approach for some funding for his or her idea. As fiduciaries, the general partners of the uVC funds have to begin to focus on the dreaded VC I-word : IRR. Friends and Family : Or sometimes referred to as the 3Fs for Friends, Family and Fools.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Accredited Investor 125

K9 Ventures

NOVEMBER 30, 2008

The birth of modern-day venture capital (not considering the European monarchs financing explorations and projects as venture capital) can be traced back to American Research and Development, which was started by Georges Doriot. For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%.

IRR 48

IRR Venture Capital LP Early Stage 48

Feld Thoughts

APRIL 21, 2016

Bill Gurley wrote an incredible post yesterday titled On the Road to Recap: Why the unicorn financing market just became dangerous … for all involved. Entrepreneurs and CEOs should make the hard call today and take the poison and move on. Why is this so hard for us a humans, entrepreneurs, investors, and everyone else involved?

Marketing 70

Marketing Down Round Startup IRR 70

David Teten

AUGUST 21, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. These entrepreneurs want to maintain two major options: 1) To raise VC later (or not), and/or. So you’re stuck selling mid-term, which is frequently sub-optimal for the entrepreneur. “. Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Steve Blank

MARCH 31, 2014

I like the guy because he’s credited with coining the word entrepreneur. 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. I’m sure many of you have heard his name.

Private Equity 330

Private Equity Metrics China Intellectual Property 330

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. Many modern entrepreneurs have limited exposure to the notion of failure or layoffs because it has been so long since these things were common in the industry. By the first quarter of 2016, the late-stage financing market had changed materially.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Agile VC

NOVEMBER 13, 2012

The IPO market remained closed to IT startups, but there were big acquisitions like Google buying YouTube for $1.65B (Fall 2006) and late stage financing rounds for companies like Facebook (Microsoft round at $15B valuation in Fall 2007). typically, which in most cases would to >20% IRR. So at a fund level (e.g.

LP 154

LP Portfolio Venture Capital IRR 154

David Teten

NOVEMBER 23, 2020

In that capacity, I co-founded the Harvard Business School Alumni Angels Venture Capital Access Program, a joint venture with the National Association of Investment Companies (“NAIC”), which helps women and diverse entrepreneurs raise capital. Traditional KPIs are, in descending order of importance: IRR (and secondarily Multiple).

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60