IRR

Definitions

1. Short for internal rate of return, a time-sensitive measure of investment performance. In venture, IRR matters because the timing of exits changes the attractiveness of returns dramatically.

   In plain English: A shorthand for the annualized return rate of an investment over time.

   Example: "The fund's headline multiple looked good, but IRR suffered because liquidity took too long."

Related Terms

• Cap Table
• DeFi
• Contingent Valuation
• Contribution Margin
• Exit Multiple
• Internal Rate of Return
• Power Law
• Risk Capital
• Upside