What are the numbers that VCs look for when they invest? In the VC business most things fail therefore the successes have to be BIG. Often you hear 10X, i.e. you should see 10 times your capital coming back. It is also dollars in, dollars out, IRR. Mobius fund today has an IRR of 90%. The more time you can play with the money and the bigger it grows, as a GP you get back the money and the LP can invest the money somewhere else. You will almost never hear a VC use IRR.
Please visit the Stanford Technology Venture Program’s Educator’s Corner for more clips.
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