Internal Rate of Return

The Internal Rate of Return (IRR) is the annualized effective return that sets the net present value (NPV) of an investment’s cash flows to zero, incorporating both timing and magnitude of inflows and outflows. In fund performance reporting, Internal Rate of Return (IRR) is widely used but can be sensitive to early distributions, interim marks, and reinvestment assumptions.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.