Unicorns are Overrated. Triple Crowns are Better.
David Coats
13212

How much would this group increase if the 100% IRR filter is dropped, leaving (1) at least 10x cash-on-cash return and (2) at least $1 million financing round. Within the time frame of even a really long hold by VC standards, a 10x return is a great outcome with a solid IRR: e.g., a 10x return over 10 years is a 26% IRR, and over 7 years is a 39% IRR.

Any hard and fast screening filter will admittedly have the problem that certain deals just below the cutoff might look more attractive in some fashion. (For example, being able to realize an 8x return on $20 million of invested capital arguably should be more attractive to GP’s and LP’s than realizing a 10x return on $5 million of invested capital.) The 100% IRR threshold on this screen, however, strikes me as unnecessarily duplicative: I don’t see that it adds useful information.

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