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Cash on Cash vs IRR

A VC: Musings of a VC in NYC

Our 2008 vintage early-stage fund has generated about 5x cash on cash but only generated a 22.5% That explains why our 2010 Opportunity Fund has a lower cash on cash return but a much higher IRR than our 2008 early-stage fund. But even for the same strategy, you can get materially different numbers.

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This Week in Venture Capital – Episode 4

Both Sides of the Table

It has proven a very successful strategy to get consumers to activate the payment on their mobile phone bill. Investors: Lightspeed Venture Partners (Jeremy Liew) (lead), with existing investors Polaris Venture Partners, Crosscut Ventures. Tags: This Week in Venture Capital. Read more: PEHub.

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M13’s Karl Alomar: 6 strategies for leading startups through a downturn

TechCrunch

Based on his time leading startups through the dotcom implosion in 2000 and the 2008 Great Recession, Alomar said it’s critical for founders to be strategic and not reactive. When it’s OK to leave money on the table. What you need to do differently to fundraise during a downturn.

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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? What happened?

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Mayfield’s Navin Chaddha: I’ve looked at clouds from both sides now

TechCrunch

What is happening to risk-taking in venture capital? I have looked at tech from both sides now (h/t Joni Mitchell ), as a three-time entrepreneur and as a venture investor through two downturns. We then drastically cut product features, re-thought our go-to-market strategy and rightsized the business.

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15 Years of Founders’ Co-op

Founders Coop

We started the firm in 2008, on the cusp of the Global Financial Crisis, and it’s somehow fitting to be entering our 15th year as the laws of financial gravity reassert themselves once again. By contrast, venture capital is a craft that defies both speed and scale. Founders’ Co-op turns fifteen this year.

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On Funding?—?Shots on Goal

Both Sides of the Table

They sold 2 years later for $16 million In the financial crisis of 2008 we had a company that had jointly hired lawyers to consider a bankruptcy and also pursued (and achieved!) The right number of deals will depend on your strategy. Early-stage venture capital is about extreme winners. It was ~30 days from bankruptcy.