A personal blog sharing ideas and observations on start-ups, the vc industry, technology, and life.
Monday, June 18, 2007
IRR Multiplication Table
The attached IRR Multiplication Table is a very useful reference tool.
The data table calculates IRR by years (x-axis) and multiple (y-axis).
Dan O'Keefe, who I worked with at Pequot Ventures is the brains behind the spreadsheet. I suggest printing it out and keeping it by your desk.
When you are on the phone you can impress your friends/boss by quickly reeling off the IRR on a 5x over 5 years (38%), 10x over 6 years (46.8%), 3x over 3 years (44.2%) etc.
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Thanks for the byline shoutout!
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