Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Part of the magic of revenue-based financing is how historical performance and strong, achievable financial projections are ultimately the backbone of how RBI/RBF investment decisions are made.” 20-30% is a common target IRR for investors.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

APRIL 3, 2012

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). 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. Type of startup.

IRR 248

IRR Term Sheet Startup Valuation 248

Startup Professionals Musings

NOVEMBER 11, 2010

If your startup desperately needs an investor, you may not care if the investor is a so-called “angel” investor, or a venture capitalist (VC). 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. Type of startup.

IRR 225

IRR Startup Term Sheet Angel Investor 225

David Teten

NOVEMBER 17, 2011

This is the third of three blog posts on financial modeling for startups. The first was on best practices in building financial models , and the second was a template financial model for a startup. Download the Startup Options Valuation model here. Valuing startups is a far fuzzier process. Participa.me

Employee 155

Employee IRR Startup Mexico 155

Steve Blank

JUNE 23, 2016

Disruptive innovations are coming from startups – Telsa for automobiles, Uber for taxis, Airbnb for hotel rentals, Netflix for video rentals and Facebook for media. 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.

Architecture 227

Architecture IRR Balance Sheet Liquidity Event 227

Both Sides of the Table

MAY 24, 2021

But markets have changed and I think investors, founders and experienced executives who want to join later-stage startups can all benefit from playing the long game. This “overnight success” was first financed in 2004. It literally drove FOMO. This is true in consumer but it’s also true in enterprise software.

Venture Capital 363

Venture Capital LP Valuation Later Stage 363

Startup Professionals Musings

MAY 9, 2011

Marty: Welcome to Startup Professionals interviews. I also spend close to half my time teaching, and in addition to serving on the entrepreneurship advisory boards at Columbia, Yale and NYU, I am Chair of the Finance, Entrepreneurship and Economics program at Singularity University in Silicon Valley. Tell us a bit about these.

New York 221

New York Accredited Investor Advisory Board IRR 221

View from Seed

JULY 15, 2020

Many of these companies are probably valued at their last financing round, which probably occurred in a very frothy funding environment. This may not hurt the ultimate exit value of these companies, but the passage of time will hurt the fund’s ultimate IRR. Reshuffling the deck.

Portfolio 215

Portfolio IRR Dilution Distribution 215

This is going to be BIG.

DECEMBER 28, 2013

Since Airbnb, however, it feels like not only is YC missing another billion dollar plus home run, but the percent of companies worth $40 million (a standard YC has used in the press), either by financing or exit, seems low. My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. That''s 25%.

Venture Capital 162

Venture Capital Cofounder IRR Dilution 162

K9 Ventures

MAY 14, 2011

The companies go through a 3-6 month long startup bootcamp and then typically try to raise angel/seed funding. Most angels invest for a couple of reasons – some do it because they genuinely love the startup space and this is their way of continuing to be involved in a startup, sometimes vicariously.

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

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

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

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. Therefore, the motivation is really to look for startups that have an appetite for a larger, chunkier investment.

IRR 48

IRR Venture Capital LP Early Stage 48

Steve Blank

MARCH 31, 2014

Just look at the disruptive challenges that businesses face today– globalization, China as a manufacturer, China as a consumer, the Internet, and a steady stream of new startups. Perhaps that’s because where established companies might see risks or threats, startups see opportunity.

Private Equity 330

Private Equity Metrics China Intellectual Property 330

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. How Tech Startups Can Get Money and Support from the Fortune 500.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Steve Blank

MARCH 4, 2014

In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. But paradoxically, in spite of all their seemingly endless resources, innovation inside of an existing company is much harder than inside a startup.

IRR 335

IRR Startup Business Model Agile 335

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.”

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

Ben's Blog

AUGUST 17, 2020

OH in South Park, San Francisco (or on Zoom from Big Sky, Montana): “OMG, crazy – that firm just paid 100x revenue to invest in [insert hot startup here] – what could they be thinking?” Not too shabby!

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

Hunter Walker

MARCH 17, 2025

No reason to sell winners prematurely just because of original fund length, especially given our LPs are largely cash-on-cash return focused more than IRR. Investing in a startup across funds – while we generally dont want to do this (for various reasons), there was an occasion or two where it made sense.

IRR 88

IRR LP Institutional Investors Portfolio 88

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. Goldman Sachs bought Clarity for ~$100m. .

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60