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What is a reasonable ROI for an investor over a 5 year medium-high risk start up?


What is a reasonable ROI for an investor over a 5 year medium-high risk start up?

Assuming you are referring a VC investment, the required return varies widely but if your business plan is projecting less than a 8-10x return it will have be quite compelling or directed at one of the specialists out there. They are also going to look critically at the exit strategy and how realistic your projection is. "Acquisition by Microsoft" (now more frequently Google) is NOT recommended and be careful about pushing the IPO path in the tech space. (See the Vonage IPO for the reasons why.)

Something that averages between 12-18% over the 5 years.

i assume you are a VC. what kind of exit strategy do you have in mind ?? acquisition, IPO. 5 years is not a long time and if its a tech firm it may take longer that that to show profits and hence gain a gradual ROI. how would you calculate medium-hi risk. its not easily formulated and that classification is largely subjective. IF and that's a huge if, if alls goes well you can make at least 10 times your initial investment. best of luck

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