Startup Professionals Musings

AUGUST 2, 2014

VCs will be looking for a 10X return on their investment in 3 to 5 years, or 30% annual IRR (Internal Rate of Return). For Angel investors, you only need to do some local networking to get interest. How large is the financial return you project? Angel investors wish for the same return, but may accept a 5X deal.

Angel Investor 266

Angel Investor Entrepreneur Venture Capital IRR 266

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). For angel investors, you only need to do some local networking to get interest. How large is the financial return you project? Angel investors wish for the same return, but may accept a 5X deal.

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Startup Professionals Musings

NOVEMBER 11, 2010

Another rule of thumb is a target of 50% IRR (a discounted cashflow calculation). Founder network. Expected return rate. Most venture capitalists tell you that they look for 30% annual return, or 10 times initial investment in 3-5 years. Successful serial entrepreneurs usually find it easier to raise money from venture capitalists.

IRR 225

IRR Startup Term Sheet Angel Investor 225

Gust

APRIL 30, 2014

Having now invested in over 85 startups, and finding that my personal metrics are very similar to aggregated industry ones, it is clear that (a) there is little to no correlation between my home runs and my personal favorites, and (b) angel investing done correctly really *can* produce a consistent IRR in the 25%-30% range.

Angel Investor 148

Angel Investor IRR Due Diligence Aggregator 148

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. *. The Entrepreneurs Access to Capital Act helps to redress this. Start now! *

Securities and Exchange Commission 148

Securities and Exchange Commission IRR Entrepreneur Angel Investor 148

Startup Professionals Musings

MAY 9, 2011

The second company in which I invested, back in 2001, was a novel concept from the serial entrepreneur who invented social networking. After that evaporated, I didn’t invest again until just after the dotcom crash (when my long-suffering spouse grounded me from any further entrepreneurial ventures :-)). The third company is still alive.

New York 221

New York Accredited Investor Advisory Board IRR 221

VC Adventure

AUGUST 12, 2014

The resulting fund would have an IRR in the range of 10% (the exact IRR would depend on the timing of the cash flows, but I constructed a few models to approximate this and 10% was the average return). As I mention above, we’re coinvestors with Correlation in Distil Networks.

IRR 134

IRR Portfolio Distribution Venture Capital 134

VC Adventure

AUGUST 12, 2014

The resulting fund would have an IRR in the range of 10% (the exact IRR would depend on the timing of the cash flows, but I constructed a few models to approximate this and 10% was the average return). As I mention above, we’re coinvestors with Correlation in Distil Networks.

IRR 123

IRR Portfolio Distribution Finance 123

Tim Keane

OCTOBER 19, 2016

It’s not very often that angel networks disclose results. Most of us are ready and willing to discuss our approaches, beliefs or methods, but usually stop well short of providing the proof of our assertions. Today, Golden Angels is publishing.

IRR 60

IRR Networking Startup 60

This is going to be BIG.

DECEMBER 28, 2013

My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. A couple of years ago, I went to a networking event sponsored by a top tier VC firm. That''s 25%. a far higher rate than YC has appeared to have done since then. All of the companies but one were funded in NYC, with the other in Boston.

Venture Capital 162

Venture Capital Cofounder IRR Dilution 162

David Teten

APRIL 8, 2013

Based on a range of sources, we believe that most funds with well-developed Portfolio Operator models have top-quartile returns (typically above 20% IRR in the relevant time periods).

Private Equity 114

Private Equity Hungary IRR Venture Capital 114

Both Sides of the Table

OCTOBER 17, 2019

We now serve many large clients like Dish Networks, Dignity Health, and U.S. An example was that while we were in the seed round at Ring and followed in the A, B, C and D … we were also able to lean into the E round when Jamie really wanted to scale up his funding and the final check was still > 420% IRR!

IP 223

IP Intellectual Property IRR Cofounder 223

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. Don't Stop Believin' Is There Any Truth in "The Social Network"? Jon Fisher purposely avoided raising venture capital in his ventures. A Lot of Horn Tooting over a Kazoo sized deal.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

Feld Thoughts

JULY 31, 2013

The late 1990s saw a fiber tequila party that started out wild — investors poured money into start-ups and fiber networks were constructed throughout the land. First, many fiber networks had consolidated into a handful of platform. Our equity IRR has averaged around 50% since inception. You know that feeling?

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). For Angel investors, you only need to do some local networking to get interest. How large is the financial return you project? Angel investors wish for the same return, but may accept a 5X deal.

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% Facebook’s acquisition of Face.com will enable the social network to embed face recognition software into its photo app. to JVP and Carmel, the highest performing funds. . Facebook Inc.

Israel 109

Israel Latvia Lithuania Russia 109

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’ve worked hard to have a network-centric view of the world. We think of ourselves as one node on a mesh network, an important node, but not a central node through which everything must flow.

Syndicate 17

Syndicate Syndication IRR Canada 17

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). Don't Stop Believin' Is There Any Truth in "The Social Network"? return on investment after 3.5 ► January. (1). ► 2010.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

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

Growthink Blog

MARCH 29, 2010

Startup investing has outperformed every major investing class, with IRRs of over 27.3% (click here to learn more). Jay Turo CEO Growthink, Inc Follow me on Twitter Join my network on LinkedIn read more Supporting good non-profits is great, but even better is to support entrepreneurs while making excellent money doing so.

IRR 59

IRR Entrepreneur Washington Government 59

K9 Ventures

MAY 14, 2011

They provide additional value add in the form of coaching and mentorship, and most of all access to a network of other entrepreneurs and smart people – that to me is really the real value of being involved with an incubator / accelerator. The incubators also help get their teams get visibility amongst potential investors.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Accredited Investor 125

David Teten

JULY 10, 2017

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. This matching structure takes advantage of the industry knowledge, proprietary deal flow, and network of senior executives.

Employee 60

Employee Balance Sheet Syndicate Syndication 60

K9 Ventures

NOVEMBER 30, 2008

The venture business is a people business — it’s all about meeting people, networking, evaluating ideas (and people) and making educated bets (on people). For what I’ve seen/heard the tops VC funds typically have an IRR of over 20%. On average, each partner needs to deploy $50M over 5 years, or $10M per year.

IRR 48

IRR Venture Capital LP Early Stage 48

Steve Blank

AUGUST 5, 2014

Two companies I helped start in 1992, DCTM and Grand Junction Networks both became Stanford business school cases and very valuable, successful companies. I was on the way to my lifetime IRR of 90%. My first IPO wasn’t until 1995—the VC business takes patience. I loved the business, and I was good at it. But then, trouble.

Venture Capital 335

Venture Capital Silicon Valley Chicago Cofounder 335

David Teten

NOVEMBER 23, 2020

– SignUp.com is an organizing platform to quickly mobilize and coordinate people in their community, school, religious organization, or other social networks. The Boston Consulting Group and MassChallenge , a US-based global network of accelerators, partnered to study why “ women-owned startups are a better bet ”. Why is that?

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60