What is a good IRR for venture capital ?
- African startups raised $2.9 billion in H1 2023.
- Venture capital investments have higher IRR expectations due to high-risk, high-reward nature.
- Aiming for an IRR of at least 30% for seed-stage investments is common.
The emphasis on IRR as a critical metric for venture capital investments highlights the need for investors to not only focus on quantitative measures but also consider qualitative factors that contribute to a startup's potential success. This dual approach could lead to more informed investment decisions and better overall portfolio performance.
