Thu, 16 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Investors in the startup space have a certain expectation for returns.
Startups raising funding should keep in mind these expectations and only approach them if you have a deal that is in the game for it.
Venture investors including angels, venture capitalists, and limited partners, typically look for a 20-30 percent internal rate of return (IRR) over a 5-year time horizon.
This can also be expressed as a“two and a half to four times” the original money invested.
If it takes longer than five years, then investors will look for a 5-10X ROI to maintain a 20-30 percent IRR.
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_-_Investor_expectations_of_returns.mp3
Category: -- posted at: 2:16pm CDT