Harvard Business Review

JUNE 18, 2015

In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches. In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

AUGUST 5, 2014

There are, of course, individual firms that succeed in generating venture rates of return. But they are too small in size and too few in number to make up for the vast majority of funds that fail to generate attractive returns (or any returns) for investors. Finance Venture capital'

Venture Capitalist 17

Venture Capitalist Asset Management Rate of Return Industry 17

Harvard Business Review

JULY 31, 2014

How did Sal Khan finance his venture? His backers believe that investing in Khan Academy represents one of the highest returns in improving education around the world (see this HBS case for more on how funders decided to get involved). First, Sal Khan could have continued in finance and made far more money than he does in a nonprofit.

Bond 11

Bond Education Finance Video 11

Harvard Business Review

FEBRUARY 26, 2016

Founding teams eager to raise capital to grow their companies enter into long-term partnerships with VC firms they don’t know well. After all, the best performing VC firms, by definition, have experience identifying and working with high-performing teams, helping startup companies grow rapidly, and guiding them through successful exits.

Due Diligence 8

Due Diligence Entrepreneur Rate of Return Long-term 8

Harvard Business Review

APRIL 30, 2015

. “At most companies, the cost of capital is a mechanical calculation done by the finance people. Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment,” he says. or 11% as the discount rate. Further Reading.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

JANUARY 26, 2012

Because of the limited investment that accelerators offer companies (usually less than $40,000), they can evaluate business plans and founding teams more quickly than traditional venture investors with arguably less risk. Accelerators with a handful of full-time employees and no limited partners will accept dozens of companies each year.

Disruptive Innovation 14

Disruptive Innovation Hedge Venture Capitalist Venture Funding 14

Harvard Business Review

FEBRUARY 8, 2018

We believe that business-friendly candidates could win, but companies should make sure that their Mexico investments have an acceptable rate of return even under this populist scenario. When it comes to Brazil, the economy is picking up.

Market Risk 9

Market Risk Marketing Supply Chain Company 9