Gust

NOVEMBER 1, 2011

The selling price can be estimated by establishing a reasonable expectation for revenues in the year of the sale and, based on those revenues, estimating earnings in the year of the sale from industry-specific statistics. Based on the Wiltbank Study, investors should expect a 27% IRR in six years. OK…let’s split the difference.

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

Up and Running

MARCH 6, 2019

With that in mind, I’ve recently reviewed an early post, and updated the 10 things I hate most when they come up in business pitches. Real businesses make profits like 7 percent, 9 percent, occasionally even low double-digit profits (stated as a percentage of sales). But don’t quote me a damned IRR. Here’s the latest.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

Up and Running

DECEMBER 22, 2015

My personal favorite in the “pure nonsense category” is the IRR, the Internal Rate of Return , something that was interesting for about one hour as part of the MBA curriculum, but which has no relevance in the real world. Angel investors are not impressed by projections of 30-40-50% or more profits on sales. Get a clue.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

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. The three founders shared a vision, built the exercise machines in the garage, and knocked on doors at health clubs, attended trade shows, and worked the phone to get initial sales. ► February.

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28

David Teten

NOVEMBER 23, 2020

This helps to replace the jobs lost as so many restaurants are going out of business due to COVID-19. Clients typically use it to create and strengthen local community initiatives: bake sales, barbeques, political organizing, etc. . Traditional KPIs are, in descending order of importance: IRR (and secondarily Multiple).

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60