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>No one invests hoping for a mere 3x return. As in, in the VC sense where you expect most people to fail, etc, right? 'Cos any day of the week I'd like to hav
by phillmv 14y ago
>No one invests hoping for a mere 3x return.
As in, in the VC sense where you expect most people to fail, etc, right?
'Cos any day of the week I'd like to have some access to 300% returns. Especially 300% in 6 months.
- majani 14y agoIn VC mathematics, you always divide by the entire lifetime of the fund to calculate your rate of return, because there's no recycling allowed. You also got to factor in compound interest and management fees, so in Socialcam's case, this works out to about 3-4% return. Dan Shapiro explained it well here: http://www.danshapiro.com/blog/2010/08/vc-insanity-economics/ http://www.danshapiro.com/blog/2010/08/vc-insanity-economics... edit: calculating Socialcam's ROI
- DanielRibeiro 14y agoThe HN discussions on the article are also very good: http://news.ycombinator.com/item?id=3683607 http://news.ycombinator.com/item?id=3683607 http://news.ycombinator.com/item?id=1598728 http://news.ycombinator.com/item?id=1598728