Chadha: Early-stage equity must target 25-30% IRRs since only 2 in 10 work
Ashvin Chadha · Backing the best D2C companies with Debt & Equity Funding | Ashvin Chadha, Anicut Capital · Jun 21, 2021 · at 23:15
Ashvin Chadha, co-founder of Anicut Capital, explains why venture equity requires significantly higher underwriting hurdles than private debt.
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“Whereas in early stage, you know, if you are underwriting to 12, 14%, you're gone because only two of 10 will work, right? So we have to go for the 25, 30% IRRs on the early stage equity side.”
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