Valuation Analysis Method: VC

Business - Peter Freeman

Assessing or deciding the estimation of advantages is a key business issue. This is particularly vital in considering an interest in a start-up or beginning period organization by a Venture Capitalist (VC), Angel, or Private Equity financial specialist, and also for business people looking for capital - outside subsidizing. Investment is commonly traded for proprietorship in the venture, and the way to the structure of the arrangement is the valuation of the business visionary's business.

This course will give an inside and out the introduction of the Venture Capital Method utilized by financial specialists and business visionaries to build up the terms for fundings. The course will cover points, for example,

  • Cash flow projection methods for early stage companies
  • The discount rate or required rate of return
  • Use these key parameters to apply the valuation method in a step-wise fashion
  • The concepts of pre-money and post-money value
  • Examine Refinements to the deal structure, stage financings and alternate types of securities                                                                                                                                             

      An example will show the calculations in detail. Practical negotiating points, a real-world perspective, are also included.

 

 

Learning Objectives:

  • Compile the key information needed to determine the ownership received for an investment in an early stage company.
  • Determine the required rate of return (ROR) or opportunity cost of capital for such investments.
  • Calculate the value of the firm’s equity at the end of the holding or investment horizon, using appropriate financial measures or metrics.
  • Determine the required value of an investment in today’s dollars, based on the present or discounted value.
  • Calculate the ownership share or fraction of the firm’s value that will fulfill the target ROR for the amount invested.
  • Apply the concepts of pre-money and post-money value.
  • Prepare analyses of alternate deal structures by applying the venture capital method – stage financings and the use of different types of ownership securities.

Instructor

Peter Freeman

Finance Expert

Peter C. Freeman has over 35 years of experience in financial management, creating financial infrastructure…

Training 5 or more people?

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What will you cover?

  •   Introduction 00:07:45

Instructor

Peter Freeman

Finance Expert

Peter C. Freeman has over 35 years of experience in financial management, creating financial infrastructure…

Training 5 or more people?

Get your team access to WIISE top 2,000 courses anytime, anywhere.

Try WIISE for Business
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