What exactly does this mean.... Does this mean if they invest $100,000 that they expect back $500,000 to $1,000,000 (5 & 10 X $100,000)?
2007-08-21 11:12:21 · 6 answers · asked by Matthew E 1 in Business & Finance ➔ Investing
You are 100 % right !
2007-08-21 11:18:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
That's exactly what they mean. Of course, the reason an investor looks for that sort of POTENTIAL is that they are investing in things that often have a ZERO return. This is very typical of venture capital investments. Usually they look at deals that have 10x to 20x potential returns because so many of them fail. An AVERAGE internal rate of return of 20%+ results.
2007-08-21 18:51:20 · answer #2 · answered by SDD 7 · 0⤊ 0⤋
That is only a guess , so do not invest more than you can afford to loose,
if it is good then you win if not than you loose all
2007-08-21 18:45:18 · answer #3 · answered by Robert F 7 · 0⤊ 0⤋
Their expectations will likely have lead to disappointment..
2007-08-21 18:44:56 · answer #4 · answered by madgooner 4 · 0⤊ 0⤋
yes over that time horizon not every year
2007-08-21 18:17:23 · answer #5 · answered by Jim7368 3 · 0⤊ 0⤋
Yes.
2007-08-21 19:31:27 · answer #6 · answered by Anonymous · 0⤊ 1⤋