Venture Capital

Probability-Adjusted APV
Hurdle Rate In the previous example we used a 12% discount rate in calculating the present value of cash flows. This discount rate might have been calculated...
Read more
Rounds of Financing
In our discussion of APV, we contemplated a single round of investment staged over two years (i.e. an initial investment by the VC in Year 0 followed by...
Read more
Returns Analysis (IRR & CoC)
Computing Venture Capital Returns Venture capitalists evaluate the potential and measure the success of an investment using two metrics: Internal Rate...
Read more