The Internal Rate of Return (IRR) for an investment that triples (3x) over 15 years is around 7.60%. Despite this relatively moderate return, it's considered a model of success, representing the top decile that venture managers aim for. Hitting this benchmark not only validates their performance but also helps them build credibility with investors and justify raising future funds.
DPI: The Only Metric that Matters in Venture
The Internal Rate of Return (IRR) for an investment that triples (3x) over 15 years is around 7.60%. Despite this relatively moderate return, it's considered a model of success, representing the top decile that venture managers aim for. Hitting this benchmark not only validates their performance but also helps them build credibility with investors and justify raising future funds.