Startup Professionals Musings

MARCH 12, 2023

VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). Sending unsolicited business pitches to every angel and VC investor you can find on the Internet is a waste of your time as well as theirs. How large is the financial return you project?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

MAY 9, 2011

David: I’m also a serial entrepreneur who has founded half a dozen companies, including Angelsoft, which provides the underlying Internet infrastructure for most of the world’s organized angel investing ecosystem. My first Internet venture in the early 1990s took about $20 million in venture capital to get to our product launch.

New York 221

New York Accredited Investor Advisory Board IRR 221

Steve Blank

JUNE 11, 2013

In times of unlimited cash (internet bubbles, frothy venture climates) you can fix your mistakes by burning more dollars. What is an IRR? These sources are a lot more forgiving of iterations and pivots than later-stage venture-capital funds. When to raise money. How do the fund and the partners make money? How long is a fund’s life?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

David Teten

MAY 8, 2012

As Steve Case has said, it’s ridiculous that anyone can gamble and be guaranteed to lose money, but there are strict regulations around who can invest in early-stage private companies and earn (in some cases) a 27% IRR on their capital. *. It was created before the Internet age to protect investors by promoting full disclosure of information.

Securities and Exchange Commission 148

Securities and Exchange Commission IRR Entrepreneur Angel Investor 148

Startup Professionals Musings

FEBRUARY 5, 2018

We are all more reachable through powerful and mobile personal computer devices, and the world is more and more connected with the Internet of Things (IoT). Investors measure their success by looking at the internal rate of return (IRR). Brands are speaking through rather than to consumers.

IRR 143

IRR Marketing Startup Angel Investor 143

Feld Thoughts

JULY 31, 2013

Fiber was the workhorse of the Internet — and nothing would alter its importance for as far as the eye could see. Our biggest customers are the wireless carriers and big content/Internet companies. Our equity IRR has averaged around 50% since inception. Today, CII d/b/a Zayo Group. Our investment thesis was simple.

Bandwidth 148

Bandwidth Colorado Startup IRR 148

Startup Professionals Musings

JUNE 5, 2016

VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). Sending unsolicited business pitches to every Angel and VC investor you can find on the Internet is a waste of your time as well as theirs. How large is the financial return you project?

Angel Investor 120

Angel Investor IRR Valuation Startup 120

VC Cafe

JULY 2, 2012

Lots of returns are being made these days, but the latest CalPers report shows dissapointing returns by Israeli VC firms , with an IRR of 3.5%-3.8% This month’s trend continues to be acquisitions of Israeli firms by large US corporates. to JVP and Carmel, the highest performing funds. . FACEBOOK BUYS FACE.COM FOR $100M. Facebook Inc.

Israel 109

Israel Latvia Lithuania Russia 109

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). All recommend this program to effectively advertise on the Internet, this is the best program! return on investment after 3.5 Help, please. Newer Post.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

David Teten

MARCH 2, 2013

The Kauffman Foundation points out several reasons why they choose to keep pouring capital into the industry: the J-curve narrative, VC investment allocation mandates (which should disproportionally benefit large funds), the “relationship business” philosophy, and potentially misleading return metrics (such as IRR).

LP 114

LP Securities and Exchange Commission Silicon Valley Venture Capital 114

ithacaVC

FEBRUARY 13, 2013

God had to have somebody willing to tweet, blog and yet take care of the portfolio CEOs, run at double speed to prevent cash challenges, ahead of the economic downturns and yet stop on mid-field and race to raise another fund when he sees the first smoke from an exit with a positive IRR. So, God made a VC!

Liquidation Preference 55

Liquidation Preference IRR Due Diligence LP 55

Seeing Both Sides

APRIL 10, 2011

But if that observation led them to refrain from investing in the Internet sector, they would have missed one of the most stunning legal creations of wealth in history. Matrix had a fund in 1998 that yielded an eye-popping 514+% IRR.

IPO 48

IPO IRR Brazil Government 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. But the world you lead will be much different from the one your professors knew or your predecessors managed.

Private Equity 330

Private Equity Metrics China Intellectual Property 330

View from Seed

AUGUST 17, 2021

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. What I was purporting was just “the greater fool theory”.

IRR 205

IRR Dilution Founder Portfolio 205

View from Seed

AUGUST 17, 2021

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. What I was purporting was just “the greater fool theory”.

IRR 156

IRR Dilution Founder Portfolio 156

View from Seed

AUGUST 17, 2021

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. What I was purporting was just “the greater fool theory”.

IRR 136

IRR Dilution Founder Portfolio 136

Steve Blank

MARCH 4, 2014

Facing continuous disruption from globalization, China, the Internet, the diminished power of brands, changing workforce, etc., This first post will describe some of the structural problems companies have; follow-on posts will offer some solutions. existing enterprises are establishing corporate innovation groups.

IRR 335

IRR Startup Business Model Agile 335

Both Sides of the Table

MAY 25, 2013

The better way to think about VC returns is, do the firms consistently beat alternative asset clases on an IRR basis to adjust for the increased risk and lack of liquidity? 33% of the world is on the Internet on average of 3.1 You invest across many funds just as VCs invest across many companies. hours / day.

LP 374

LP Later Stage IRR Term Sheet 374

abovethecrowd.com

APRIL 20, 2016

The same thing happened to many Internet stocks. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR? In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Occam's Razor

OCTOBER 14, 2014

Leaders (company is leaving China, our IPO is next week, 1,800 new stores are being opened in 180 days, our new IRR is 8%). For this blog, Benchmarking classifies me into Internet & Telecom vertical. Any big shifts in investment (marketing, customer experience, team sizes, tools). And other such things. Very confidence building.

Analytics 135

Analytics Vertical Metrics Web 135