Do you prefer podcasts? Listen to the audio here. In valuation theory, comparables are referred to as those companies or deals that are similar in size, type of company and industry. Comparables can be very useful for setting your own milestones and projections. Making any type of financial or business planning is simply making an educated…
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Do you prefer podcasts? Listen to the audio here. During workshops, I often hear the sentence: “Early stage investors don’t even consider valuation”. Truth is, even if it may seem that they are neglecting valuation, investors are simply looking at it from another perspective. Valuation is the starting point of each and every negotiation. For the simple reason that, at a certain point, everything…
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There are two statements in general you can hear out there related to dilution: Future rounds are going to dilute my participation so you should allow me a larger share now to prevent this from happening! Cash is neutral; you are diluted in terms of control, but if you’d like to avoid dilution you can…
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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 moreNot the usual article! This article is not the usual article you can find in our blog. Instead this is an essay on startup valuation that I wrote a couple of months ago. It presents a completely new way of looking at startup valuation and division of equity. The answers to a survey on valuation…
read moreI want to present my approach on how to deal with difficulty of contracting the value of the company with VCs. They know what they are talking about and if you don’t know much about finance, your counter arguments are going be weak. And, as a result, you are going to undersell your company. Today,…
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