Gauri Deoras
In the Foresight Model:
2. Return Projections and Performance Assumptions
- What are the best practices/benchmarks to reflect power law assumptions for fund return multiples?
- How does the model account for the distribution of portfolio companies by their expected performance (e.g., 60% written off)?
- What IRR and multiple benchmarks are used to assess model performance, and how do these compare to historical VC fund performance?
- What distribution assumptions are used for exit outcomes (e.g., IPO, acquisition, write-off)?
- How sensitive is the model to changes in exit timing or valuation at exit?
- Are power law distributions explicitly modeled, or inferred from historical data?
- How does the model handle the J-curve effect, especially in the early years of the fund?