My fund model is coming in really high multiples. I am suspicious. Have sent to my team for additional layers of extreme validation and scrutiny but I’m afraid to put these numbers in the deck until I can really really defend them. Does anyone else have this issue? I feel tempted to pull some standard off the shelf numbers and put them in for now until we can validate these further and I feel more solid in them…but they’d be wrong. Thoughts?
May 03, 2023
Don’t do that. You’re not doing this for VC Lab, you’re doing this for your Firm.
Do this instead - create 3 scenarios: high, medium, low Then, add a multiplier on your model and play around with a few scenarios that fit the categories that I mentioned above.