Startup Funding Espresso -- What Return Do Angels and VCs Look For?
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. I\u2019m often asked what return angels and venture capital investors seek in their startup investments.Angels generally seek around a 30% IRR (Internal Rate of Return). That would be 3X their investment in four years.For longer timeframes, angel investors will be looking for a 5X-10X return for a startup investment.The longer it takes the higher the multiple.VC funds operate on a 10-year cycle and look for an exit in that timeframe. Most seek a 10X return in the 5-7 year window.If your company growth is low, then that signals a longer-term exit and thus a higher required return.If you find investors are not interested in your deal, it may be because your deal doesn\u2019t fit into this expectation. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of .