Value = Valuation. Valuation -> Profits. Profits!= Profiteering. Are you a startup wondering about this sequence? Then you may want to consider working with impact investors. There are benefits and pitfalls in doing so, before discussing them let’s first define the types of venture capital. 1) The Three Different Kinds Of VCs Traditional investors, also often called institutional VCs, have a single bottom line: financial returns. In other words, the LPs investing in a fund are counting on the fund manager to take their investment and make money, 3x net of fees with a 20% IRR are the benchmarks for…...
Startups And Impact Investors – Good or Bad?
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