Jared Heyman
Jul 11, 2023

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This is an average annual return (AAR) calculation and not IRR. The big difference is that IRR compounds and AAR is simply the total return divided by the number of years. If you look at just the YC Top Companies, there's a ~100x average return for seed investors net of dilution, with an average investment age of ~7 years, so a ~14x or ~1400% AAR for just those companies.

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Jared Heyman
Jared Heyman

Written by Jared Heyman

Tech guy and investor. Founder at Rebel Fund and previously Pioneer Fund, CrowdMed (YC W13), Infosurv & Intengo (acq. LON: NFC). Ex-Bain consultant. Data nerd.

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