'irr' Tag
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VC math
March 13, 2024Before embarking on a fundraising journey from VC, every founder should first reflect on whether venture capital funding is appropriate for their company. Financial backing from a VC firm, especially if it’s a good one, can provide potentially heroic benefits to a startup. However, depending on a founder’s level of ambition and personal motivation, VC […]
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Venture Capital: Why AUM is the wrong metric
November 29, 2021There’s an old dig that venture capitalists like to make about private equity professionals: private equity folks boast about the size of their ego in AUM, whereas VCs know that what really matters is their IRR. Now let’s define these three-letter words. First, I’m using the word ego as a euphemism here to be gender […]
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Too big to care
June 22, 2010There is a subtle but insidious trend burgeoning within France’s private equity industry. This trend is a shift in fund objectives from a “capital gains generation” model towards a “fee generation” model. In other words, the financial benefits accruing to private equity GP’s are increasingly coming more from management fees than from carried interest. As […]