Investment-based Crowdfunding: Why People do NOT Invest Online
Lots of hyped articles about crowdfunding can be found online. Is everything they describe nonsense? No, definitely not but they do need some backup for their claims and that’s what this article provides: an approach on crowdfunding motivations from a scholarly perspective. So what are exactly the reasons for online equity investments or alternatively, ordering…read more
Small Business Funding Series: Hybrid Financing
After discussing crowdfunding, equity and debt financing throughout the month of February, let’s wrap up our Small Business Funding series with an examination of hybrid financing. Knowing your funding options is a must for all small business owners looking to cultivate and benefit from relationships with investors, and this mode of raising capital might very…read more
How Do Investors Value A Startup?
Valuing companies is tricky. The methods used to value a company are dependent on the stage of development of the startup. Coming up with the price for early-stage startups is particularly difficult because they have little-to-no track record. So here comes the question: How do angel investors value a startup? If you are in this…read more
ICO – Initial Crowdfunding Offering
An introduction to Equidam Valuation Academy Who, among the entrepreneurs reading this post, feels confident in explaining what an IPO is? Sure, you probably know the meaning: Initial Public Offering. You might know it is the process that brings companies to be traded in public stock exchanges. In a nutshell, via an IPO a company…read more
A quick guide to Financial Metrics
When running your business, having the discipline to keep track of your financials might be tough, as there are 1000 other things you have to take care of on any given day. However, analyzing relevant business information is vital in order to grow your business as it enables you to see if your company is…read more
How to attract investors’ attention?
Wondering how to convince investors of your idea? Use the right tools to display your strengths! In the previous article we went through some of the most important aspects investors value when deciding upon the investment in your startup. This qualitative analysis also plays a big role in the valuation that the interested parties will attribute…read more
3 Competitive Advantages that set European Startups Apart
This article was originally posted on Medium here. European startups raised $6,9 Bln in the first half of 2015, 86% more compared to last year. BlaBlaCar, Adyen, Delivery Hero etc. made headlines with their large financing rounds and IPOs. And the total worth of European unicorns got to 110Bln at the start of 2015. Europe…read more
Are Networks and Regulation Responsible for Slow European Startups?
This post originally appeared on my Medium feed here. A few weeks back I wrote “The European Startup Scene is Still Broken” that you can find here. In that article I argued that scaling companies in Europe is still difficult, mostly because of market fragmentation. The article got picked up by @hackernews and more than 50…read more
Startup Valuation Methods
Early stage valuation is considered an art by many. However, as all arts, methods and best practices apply and bring the art forward over time. For early stage business valuation, different best practices have been developed recently to account for the modernization of investing. Different stage, different approach Public company valuation has best practices that have…read more
Understanding Investors’ Required Return
In the previous article we discussed Discounted Cash Flow valuation methods. These well-known methods discount future cash generated by the company to understand its value today. The cash flows are discounted according to the risk of realization. Indeed, the higher the risk that these cash flows will materialize, the lower their value today. However, the…read more