WHERE ARE EARLY-STAGE INVESTMENTS GOING?

Smart money from startup investors follows ever changing trends in terms of sector, region, stage, and instrument. Startup investors, including business angels, VCs, family offices and corporate VCs can invest directly into startup investment rounds, or join co-investment funds, syndicates or invest in other funds. Funds are increasingly set up as specialised sector funds. They[…]

What is value?

Value is not always what you think. In the startup world, everyone is talking about it, tech news are filled with funding round valuation analysis and exit stories. Yet the talk often only touches the surface of what there is to know about the valuation of early-stage investments, or even the valuation of any company[…]

Business valuation calculators: to use or not to use?

There are a few companies out there offering automatic valuations for startups. While it seems like a good option for all those companies who can’t figure out how valuation works and what value to communicate to investors, using an automated model completely fails the scope of the valuation. There are three main reasons for this: Your financial[…]

The documents you need to approach investors

Startups and SMEs alike are often clueless as to what documents and information are needed to approach investors. These documents vary depending on the purpose (whether you’re looking to give away minority shares, to receive a loan or to sell your company) and on the type of investor that you’re approaching (VCs and other institutional investors,[…]

Investing in Innovation

How the European Union invests in innovative projects

Navigating through the countless EU projects for promoting investments into innovative companies can be challenging for entrepreneurs. The reality is that most of the direct financing takes place on a local level  – the best source to identify these financial intermediaries that have accessed European funding to finance local companies are listed directly on the official EU database ,[…]

Damodaran on Narrative and Numbers in Valuation

Aswath Damodaran’s webinar on “Narrative and Numbers: A Guide to Disciplined Story Telling and Imaginative Number Crunching” on Sageworks provided some very interesting insights into different approaches to valuation. Damodaran distinguishes between those people who are more comfortable with number crunching, and the storytellers. The ‘Numbers’ people tend to think that valuation is all about[…]

When valuation is situational

We know that two people never come up with the same valuation. What we have to remember is also that value MUST be different in different situations. Every time we perform a valuation, we make assumptions about the scope of that valuation, and very often the basic assumption correspond to the sale of non-controlling shareholdings to the[…]

The information base in valuation

Before starting with your valuation you should establish a good information base, whether you’re doing it for your company internally or for an external client, which will save you time and prevent mistakes. This means going through a checklist on the assignment’s characteristics and collecting all key information. If you’re carrying out a valuation as an external[…]