Glossary

IRR

Internal rate of return, or IRR, is a calculation that expresses the rate at which the net present value of a series of cash flows equals zero. Results depend on timing and assumptions.

Why it matters to a capital raiser

I explain the cash flows and calculation basis because IRR alone does not show total dollars received.

A term can mean something different in a particular deal, so read it with the governing documents. General education only. Not legal, tax or investment advice.