Steve Blank

AUGUST 5, 2014

I loved what he was working on (thanks to perspective in data management from my large company experience here—that prepared mind thing). Don’t be afraid to take a step down (Oracle was a $1 Million business, I had been marketing manager for a $100 Million business). I was on the way to my lifetime IRR of 90%.

Venture Capital 335

Venture Capital Silicon Valley Chicago Cofounder 335

Hunter Walker

JULY 18, 2021

I never really tracked IRR or net returns, but I did pay close attention to ‘lessons learned.’ A couple of times I encountered very likable first-time founders who were operating in an interesting problem space but lacked strong product instincts or experience. Here’s 2 (and a half) mistakes I made that you should avoid.

Cap Table 154

Cap Table IRR Angel Investor IPO 154

Growthink Blog

JUNE 3, 2014

Over the last three weeks, we have discussed the various factors that drive the 25% IRR return potential of the startup and emerging company investing class. Yet, for the very most part, it is to this world that most of us turn to manage our money. As in, Trust Us and we will take care of it for you. Now, there are alternatives.

Omaha 91

Omaha Accredited Investor IRR Silicon Valley 91

Hunter Walker

FEBRUARY 25, 2018

One consistent LP complaint I hear about new’ish fund managers is that they forget a bunch of fund construction and portfolio modeling decisions are connected. Our J Curve and early IRR may look worse than other funds. “What did you change about Homebrew III to better fit ‘seed phases’ versus seed rounds ?” That’s a great question!

Product 92

Product IRR LP Seed Stage 92

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

abovethecrowd.com

APRIL 20, 2016

These mutual funds “mark-to-market” every day, and fund managers are compensated periodically on this performance. We have already seen examples of founders and management obtaining liquidity in front of investors. Do you feel the need to raise more capital quickly before the prices erode further and bring down your IRR?

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Berkonomics

JANUARY 6, 2022

Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation. One tool often used: the “cutout” for management. That further reduces the amount available to founders if not still in the ranks of management.

Dividend 62

Dividend IRR Preferred Stock Participating Preferred 62

David Teten

JULY 10, 2017

Why couldn’t a large company offer 1:1 or greater matching of the angel investing of their senior management? Angel investing is an exceptionally high-return asset class; I have collected twelve studies on angel returns in the US and UK, which show median internal rate of return (IRR) between 18 and 38 percent.

Employee 60

Employee Balance Sheet Syndicate Syndication 60

K9 Ventures

NOVEMBER 30, 2008

The General Partners (GPs) are the operating guys. In return for the operational role the GPs play, their firm receives a Management Fee. Industry averages for the management fee are expected to be around 2.5% Well, for one, you have to try and secondly, the management fee makes for a nice perk. Background.

IRR 48

IRR Venture Capital LP Early Stage 48

Berkonomics

OCTOBER 1, 2015

Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation. That further reduces the amount available to founders if not still in the ranks of management. So this advice is directed to the investors.

Dividend 48

Dividend Preferred Stock IRR Participating Preferred 48

David Teten

AUGUST 21, 2019

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. That said, Jim Toth, Managing Partner, Riverside Acceleration Capital, observes, “Actually, everyone is aligned towards growth.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Ben's Blog

AUGUST 17, 2020

This growth could be a function of product differentiation, go-to-market operations, sheer market size, new geographies, and expansion into adjacent categories. The management teams of both companies may want to be valued at 15x 2020 revenue — in other words, both companies would be worth $300 million. Not too shabby!

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

David Teten

NOVEMBER 23, 2020

In its first full year of operation, VCAP attracted 159 applicants. They provide retail clients with sophisticated risk management tools that previously only ultra high net worth investors could access. . So the ethical question is, how transparent should I be in discussing my concerns about a given company and its management?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60