Prioritizing Investment Return Objectives

I was recently talking to an entrepreneur that passed on an investment because it would not need yield the company at least a 10x growth opportunity. I told him those level of returns are reasonable when investing in small businesses under $5MM, but that he should consider lowering his ROI threshold when investing in larger companies. My logic was twofold: (1) bigger companies are harder to grow as quickly as small businesses, so the growth percentages will be lower; and (2) you can make “oodles” more money in dollars on the bigger company investment, even if the ROI was only 3x-5x. This post will help you know when to

→ Continue reading at Forbes - Startups

More from author

Related posts

Advertisment

Latest posts

‘He was clearly nervous’: CNN correscpondent on SBF’s reaction in court | CNN Business

'He was clearly nervous': CNN correspondent on SBF's reaction in court ...

35,000 workers across 18 casinos will strike on Nov 10 if deal isn’t reached | CNN Business

CNN  —  The Culinary Workers Union Local 226 and Bartenders Union Local 165 will strike on November 10...

Analysis: India regains its economic swagger as China stumbles | CNN Business

New Delhi CNN  —  India’s economy is like an elephant. The world’s most populous nation is hard to...