How would you reconcile the following? (a) VCs often use very high hurdle rates when valuing potential

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How would you reconcile the following?

(a) VCs often use very high hurdle rates when valuing potential new investments.

(b) The historical average return for a large sample of VC funds is around 14%.

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Entrepreneurial Finance Venture Capital Deal Structure And Valuation

ISBN: 9781503603219

2nd Edition

Authors: Janet Kiholm Smith, Richard L. Smith

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Question Posted: Apr 26, 2024 06:02 AM

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How would you reconcile the following? (a) VCs often use very high hurdle rates when valuing potential

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Reconciling the seemingly high hurdle rates used by venture capitalists VCs with the historical average return for VC funds around 14 involves underst...View the full answer

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

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