Internal Rate of Return (IRR)
정의
IRR is the annualized rate of return an investment produces, accounting for the timing of cash flows. It is one of the two headline metrics funds report to LPs, alongside MOIC.
투자유치 시 활용 방법
IRR rewards speed: an early exit at a modest multiple can show a high IRR, while a long-held big multiple can show a modest one.
자주 묻는 질문
What is the difference between IRR and MOIC?
MOIC measures how many times the money multiplied, ignoring time; IRR annualizes the return, making timing central.
What IRR do venture funds target?
Top-quartile venture funds have historically aimed for net IRRs in the 20 percent-plus range, though results vary widely by vintage.