Tim Keane

JANUARY 12, 2010

Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Steve Blank

JUNE 11, 2013

For many entrepreneurs “raising money” has replaced “building a sustainable business” as their goal. Entrepreneurs need to think about 1) when to raise money, 2) why to raise money and 3) who to take money from, 4) the consequences of raising money. What are revenue strategy and pricing tactics? William Shakespeare.

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

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. Most entrepreneurs (and VCs raising from LPs) think this means progress. Entrepreneur : “Sure. Some people find this elitist?—?I It doesn’t. No problem. We have all of that.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Both Sides of the Table

OCTOBER 17, 2019

Invoca is now doing 10s of millions in recurring revenue and is growing > 75% year-over-year but it took the first 3 years to really build out the technology and acquire our initial enterprise clients. I mentioned that we sold our position in Kyriba for > $1 billion but when we invested it had virtually no revenue.

IP 223

IP Intellectual Property IRR Cofounder 223

Startup Professionals Musings

JUNE 5, 2016

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited Angel investors. Angels are more likely to fund new entrepreneurs, and early-stage or seed rounds, while VCs tend to focus on entrepreneurs with a successful track record, and later stage rounds.

Angel Investor 120

Angel Investor IRR Valuation Startup 120

Feld Thoughts

JULY 31, 2013

As Boulder continues to gain visibility as a great place to create companies, I’ve decided to highlight some of the entrepreneurs – and their companies – who have contributed to Boulder in significant ways. Our equity IRR has averaged around 50% since inception. “How can Brad help? We raised $2.7B

Bandwidth 148

Bandwidth Colorado Startup IRR 148

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. But should they? Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

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 income approach. What drives value?

Valuation 128

Valuation NPV Net Present Value IRR 128

Hippoland

NOVEMBER 13, 2016

When I was an entrepreneur, it never crossed my mind how VCs measure their success. So, as an entrepreneur, in many cases, you are pitching people who may not even be good investors. But what if a company is growing revenues but hasn’t raised a round in a while? Last traction: None have revenue. Equity rounds of $10m pre.

IRR 48

IRR Valuation Portfolio Due Diligence 48

crowdSPRING Blog

AUGUST 7, 2011

In addition, as long as investors can earn higher returns on T-notes, they will expect higher returns from alternative investments in equities and VC’s may follow suit for similar reasons and expect a higher IRR from their invest,ends in new ventures. Uncertainty may abate. Tax increases may be ahead. Photo: Kevin Krejci.

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. 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. Entrepreneurs/Founders/CEOs.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

K9 Ventures

NOVEMBER 30, 2008

The expectation is that while venture investments are more risky than other forms of investments (though that is open to speculation in the current financial meltdown), they also typically have a high Internal Rate of Return (IRR). 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

Seeing Both Sides

APRIL 10, 2011

million in revenue the year before. . Matrix had a fund in 1998 that yielded an eye-popping 514+% IRR. In May 1996, Open Market completed a successful IPO and more than doubled on the first day of trading, ending with a $1.2 billion market capitalization. We had recorded $1.8

IPO 48

IPO IRR Brazil Government 48

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