Wait for Your Pitch

Jack Taylor –

“For me, plate discipline is being able to know what pitch you want to put in play before you step in the box and not swinging at anything else but that.”

— Hall of Fame Atlanta Braves third baseman Chipper Jones

As in baseball, venture capital funds must “score runs” to succeed. Institutional VCs score by returning capital to limited partners (“LPs”), as measured by metrics such as multiple on invested capital (“MOIC”), total value to paid in capital (“TVPI”), internal rate of return (“IRR”), and distributions to paid in capital (“DPI”). The “game” is to provide a risk-adjusted return that exceeds what these LPs could have received by investing in other asset classes.

For corporate venture capitalists (“CVCs”), winning can be measured not only in financial terms, but also by including strategic metrics such as market intelligence, new revenue opportunities, and commercial partnerships, as Touchdown’s co-founder David Horowitz describes.

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