I really like Will Price’s (CEO of WidgetBox and not to be confused with WidgetBucks) post on his IRR multiplication table.
There is a lot of debate around the changing role of venture capital – is it better to make small or bigger bets? Everyone has an opinion on whether you need to shoot for base hits (smaller exit price, smaller money invested) versus home runs (bigger exit price, more money invested). Whatever your religion is, this chart is a neat little reference to have on your wall.
Any so-called financial analyst making decisions based on IRR, much less an IRR table deserve the inevitable outcome of those decisions.
Posted by: The Smartest Guy in The Room | February 19, 2009 at 05:01 PM