IRR Analysis: Years Invested vs. Return Multiple

Entrepreneurs often don’t know what their investment opportunity means on a return basis to angels or VCs.  VC’s often shoot for a 30%+ IRR (4x return) as a minimum for their portfolio over a 5 year period, and often seek a higher IRR on each individual investment (knowing some dilution will occur with future capital raises).  See the chart below – IRR Analysis: Years Invested vs. Return Multiple.  If you’d like to download this chart as an excel file and play with it, click here:  https://www.dropbox.com/s/pz88vdbwfzk6whk/IRR%2C%20Multiple%2C%20Year.xlsx?dl=0