View from Seed

JULY 15, 2020

VC’s also manage multiple funds that get deployed over 10+ years, with new investments happening over the first 2-3 years of a fund’s life. Many of these companies are probably valued at their last financing round, which probably occurred in a very frothy funding environment. Vintage year differences. Reshuffling the deck.

Portfolio 215

Portfolio IRR Dilution Distribution 215

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. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

Up and Running

JUNE 17, 2013

We looked at the product, the market, and the management team, with some attention to defensibility and scalability, and we made our own intuitive comparisons of possible ROI. And Internal Rate of Return (IRR)? Finance angel investment IRR ROI venture capital' I trust my judgment on that. It isn’t helping them.

IRR 71

IRR Flash Angel Investor Venture Capital 71

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

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. By the first quarter of 2016, the late-stage financing market had changed materially. This is uncharted territory.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Professor VC

JANUARY 17, 2008

If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007). He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

K9 Ventures

MAY 14, 2011

As fiduciaries, the general partners of the uVC funds have to begin to focus on the dreaded VC I-word : IRR. The institutional funds typically manage a relatively large pot of capital (~$300M or higher per fund, with multiple funds running). This also changes the types of deal terms that micro-VCs will undertake.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Accredited Investor 125

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

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? Labor Arbitrage.

San Diego 72

San Diego Warrant IRR Investment Bankers 72

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. In return for the operational role the GPs play, their firm receives a Management Fee.

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. As Bill points out, many funds are sitting on huge paper gains which translate into large TVPI, MOC, gross IRR, or whatever the current trendy way to measure things are.

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. The RBI investor is motivated to help the company grow because that speeds up the pace of revenue payback, and therefore IRR. Requires regular monthly payments and careful cash management. But should they?

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Ben's Blog

AUGUST 17, 2020

The conventional wisdom finance professionals are often taught is that you should not pay a higher multiple today than what you’d expect to be paid upon exit — that is, your entry multiple should equal your exit multiple. Not too shabby! But would that be a good deal for the shareholders entering at this stage?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Hunter Walker

MARCH 17, 2025

One of the folks, Lisa Cawley (Screendoors Managing Director), recently published a blog post called Work with your LPAC, not for your LPAC , which got me thinking about Homebrews LPAC (Limited Partner Advisory Committee). Standard Asks/Approvals Extensions on fund length as needed – everyone knows its taking longer to get liquid.

IRR 87

IRR LP Institutional Investors Portfolio 87

David Teten

NOVEMBER 23, 2020

. – Indiegogo.com is a crowd-funding platform allowing contributors to empower hundreds of thousands of inventors, musicians, do-gooders, filmmakers – and many more – to bring their dreams to life. – Clarity.com proactively advises you on managing your personal finances efficiently. Are you politically active?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60