[nostrademons]

There's a time value on that money. If you'd put $10M into an S&P 500 index fund in 2011, it'd be worth about $22M now, which first of all is a fair bit more than 7.5% and secondly is the denominator you're looking for to figure out percentage returns on capital now. The company wasn't making $780K/year in profit in 2011, it took 7 years to get there.

[eanzenberg]

That's timing though, historically I believe s&p yields 7% per year on average.

[cecilpl2]

Assuming reinvested dividends, the S&P has returned 7% real, or 10% nominal over its lifetime.

[umeshunni]

And the return on venture capital during those slow periods are also presumably lower (due to recessions etc)