In my book, anything above a 5X return isn't too shabby. Now, I know managing a portfolio takes time and suddenly doubling the number of companies you can invest in is a blessing and a curse. So I can understand from a VC's perspective that if a company only potentially requires $5MM over its lifetime it does pose a challenge to the fund looking to place $5-10MM.

Other than that I really don't see what there is to be concerned about..

In the case of Sphere they had taken in $3.5mm in two rounds (don't know % equity or valuations at these points) but at face value turning that investment into a $25mm buyout in ~ 2 yrs can't be too bad.

Farecast, well, not as high of a multiple by taking ~ $20.6mm and tripling that.

The first thing I thought when reading your post was that there was a disconnect between the now common thread of "build it faster, lighter, cheaper" and the you're first measure of a sub $100mm deal being of modest size. In the end, isn't it the % return that counts the most?

As a result, the broad classifications of small, medium, big probably don't work well. "Modest" in my book is sub-$100m, but I'm always happy when I have a company that is acquired for any amount that generates a positive return!

As a result, the broad classifications of small, medium, big probably don't work well. “Modest” in my book is sub-$100m, but I'm always happy when I have a company that is acquired for any amount that generates a positive return!

In my book, anything above a 5X return isn't too shabby. Now, I know managing a portfolio takes time and suddenly doubling the number of companies you can invest in is a blessing and a curse. So I can understand from a VC's perspective that if a company only potentially requires $5MM over its lifetime it does pose a challenge to the fund looking to place $5-10MM.

Other than that I really don't see what there is to be concerned about..

In the case of Sphere they had taken in $3.5mm in two rounds (don't know % equity or valuations at these points) but at face value turning that investment into a $25mm buyout in ~ 2 yrs can't be too bad.

Farecast, well, not as high of a multiple by taking ~ $20.6mm and tripling that.

The first thing I thought when reading your post was that there was a disconnect between the now common thread of “build it faster, lighter, cheaper” and the you're first measure of a sub $100mm deal being of modest size. In the end, isn't it the % return that counts the most?