roi Archives - The 411 On Startups (tm)

How Do VCs Mitigate Risk In Their Investment Portfolios?

Oct

2011

(Although this original post was written about VC diversification, the points are equally valid for Angels.) Question: How do VCs mitigate risk in their investment portfolios? Are VCs simply looking to diversify the type and stage of companies in which they invest, or do they employ other financial hedging strategies? I’m not aware of VCs ...

The Venture Capital Math Problem

Apr

2009

This is a post by Fred Wilson of Union Square Ventures. It goes through some statistics on Venture investing and ROI to imply the VC returns model is broken. More interesting are the comments it inspired; those comments have some really good data, freely given.

For Angels and Entrepreneurs — Valuation and Exit Ratios by Kelly Perdew

Oct

2008

Negotiating the valuation for a venture-where the valuation is based on the percentage of the venture’s equity that an investor receives for some amount of capital-may be the most important and the most misunderstood element in seed, startup, and early-stage investing. Important because valuation directly impacts both the percent of the venture that the entrepreneur ...

Oregon Entrepreneurs Network – Angel Investor Asset Allocation

Oct

2008

Asset allocation is the key decision of every investor. But how does Angel Investing fit into an individual’s asset allocation? The following chart shows U.S. Trust’s asset allocation guidelines for most investors (we have excluded all bond and all equity portfolios). This chart shows our projected 10-year return for the asset class and the range ...

Startup Pre-money Valuation: The Keystone to Return on Investment – Entrepreneurship.org

Sep

2008

For decades, experienced angel investors have intuitively used the following rules of thumb for investing in seed and startup companies: * Home runs provide all the return on investment. In a typical angel investor’s portfolio of ten investments in seed/startup companies, half the companies perish with no return to investors, and an additional three or ...

The 411 On Startups ™

How Do VCs Mitigate Risk In Their Investment Portfolios?

The Venture Capital Math Problem

For Angels and Entrepreneurs — Valuation and Exit Ratios by Kelly Perdew

Oregon Entrepreneurs Network – Angel Investor Asset Allocation

Startup Pre-money Valuation: The Keystone to Return on Investment – Entrepreneurship.org