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. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 205

IRR Dilution Founder Portfolio 205

Gust

NOVEMBER 1, 2011

For example, a software company with revenues of $20 million in the harvest year might be expected to have after-tax earnings of 15%, or $3 million. It is also known that software companies often sell for two times revenues, in this case, then, a Terminal Value of $40 million. OK…let’s split the difference. million ÷ 20X.

Venture Capital 161

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

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. at exit due to dilution. So it’s like this same fund actually invested $2.5M

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. at exit due to dilution. So it’s like this same fund actually invested $2.5M

IRR 136

IRR Dilution Founder Portfolio 136

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. Read more of my articles related to this topic: You Can Take That IRR and Shove It. Get a clue.

Angel Investor 60

Angel Investor IRR Software Review Startup 60

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. They remind me of the old days when every software package claimed to be user-friendly (and mine was the only one that really was). But don’t quote me a damned IRR. Here’s the latest.

Net Present Value 87

Net Present Value Forecast IRR Oregon 87

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. How Much Diligence is Due. Jon Fisher purposely avoided raising venture capital in his ventures. Why I Hate Convertible Debt.Let Me Count the Way. ► February. (1). ► January. (1).

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Angel Investor 28