Up and Running

AUGUST 19, 2014

I have pitched to hundreds of angel investors over the years as a result of co-founding two tech companies and raising just shy of $1M in angel capital. My favorite part of pitching to them was the due diligence process. Forget the stupid IRR (that’s internal rate of return) that they taught you in business school.

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 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

VC Cafe

MARCH 8, 2010

TriVentures II , a $25 million medical device fund (with American medical technology company Medtronic Inc. Koby Simana, IVC CEO, said: “foreign institutional investors – who before the crisis had been the lead source of capital invested in Israeli funds – have suffered serious losses due to the credit crunch.

IRR 74

IRR Israel Venture Capital Institutional Investors 74

David Teten

MAY 16, 2017

A few years ago, I presented at an Invesco conference on Emerging GPs, and one of the highlights was a presentation by Laurie Weir summarizing CALPERS’ selection criteria under their Private Equity Emerging Manager Program Review. Chris Douvos is one of the very few LPs who blogs, at SuperLP.com. ” .

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Startup Professionals Musings

JUNE 5, 2015

Of course, both are impressive, but according to Rose, angel investing is as poised as crowd funding to take off due to the same online technology, and there is plenty of opportunity for both. There is a rarified brand of successful investors who can show average IRRs of 25 percent or greater over the years.

Angel Investor 120

Angel Investor Angel Groups Accredited Investor IRR 120

David Teten

SEPTEMBER 16, 2014

These companies can range from tech startups to food trucks to retail stores. Top performers conduct 40 hours or more of due diligence per investment and stick with companies as active advisors.[3]. Q: What is the typical profile of angel investors? Q: Why do people become angel investors? Average Angel Returns Over Time.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

David Teten

JANUARY 19, 2021

Our categorization is not a technical one. Additionally, Flexible VC can accommodate all types of companies, not just asset-lite, tech-enabled companies.”. This causes the cost of capital for Flexible VC, often calculated through IRR (similar to an interest rate), can be higher than that of venture debt or traditional RBI.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

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. I don’t mind the technical jargon as much because people know they have to explain them. But don’t quote me a damned IRR. That’s me in the front row, second from the aisle, on the left.

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

Angel Investor 60

Angel Investor IRR Software Review Startup 60

Tim Keane

JANUARY 12, 2010

If you look at the spreadsheet, you will see that the “Required Rate of Return” is expressed as an IRR.   Internal Rates of Return naturally compound, so a 50% IRR is 7.59   (If you plug in an IRR of 58.5%   Internal Rates of Return naturally compound, so a 50% IRR is 7.59 times at 5 years and 11.39

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Seeing Both Sides

SEPTEMBER 26, 2010

As you might expect, the wolves have the edge in the encounter, due to superior market information or negotiating position. To achieve that same 38% IRR in 9 years, a 20x return is required! If the founders take money off the table, they are incented to go for the bigger win and don’t mind taking the time to get there.

IRR 36

IRR IPO Entrepreneur LP 36

abovethecrowd.com

APRIL 20, 2016

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. In Q1 of 2016 there were zero VC-backed technology IPOs. 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

David Teten

NOVEMBER 23, 2020

Here’s what I said: In your career in tech and VC, how has your focus on ESG responsibility changed over time? When we launched in 2010, I saw a white space: a burgeoning NY tech ecosystem, but only one angel group regularly writing checks. – Starship Technologies sells an autonomous robot-powered local delivery service.

Venture Capital 60

Venture Capital Partner Technical Review Cofounder 60