Valutico

AUGUST 30, 2023

Terminal Growth Rate – A Simple Explanation with Formula The Terminal Growth Rate is often used in valuation models and financial projections, but what is it and why is it important? Below we aim to provide a straightforward explanation of what the Terminal Growth Rate is and its significance in financial analysis.

Terminal Value 98

Terminal Value Dividends Weighted Average Cost of Capital Discounted Cash Flow 98

Equidam

MARCH 20, 2024

Against the backdrop of a frosty market for startup fundraising, AI companies are raising large rounds on fairly relaxed terms. So, as the founder of an AI startup, how should you think about your valuation as you approach your first funding round?

Marketability 77

Marketability Data Analysis EBITDA Technology 77

Equidam

FEBRUARY 16, 2024

This update may result, on average, in a slight valuation decrease. Average valuations used in the Scorecard Method and maximum valuations used in the Checklist Method We base our estimates on real transactions by country since August 1st, 2021. To help explain why, we have provided more detailed analysis in the article below.

EBITDA 44

EBITDA Specific Risk Banking Marketability 44

Brian DeChesare

MARCH 13, 2024

Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity.

Equity 95

Equity Start-ups Marketability Banking 95

Lighter Capital

FEBRUARY 12, 2024

A startup founder begins the entrepreneurial journey owning 100% of the company, or a split of that if there are co-founders in the mix. As if building and growing a new, successful business isn’t challenging enough, founders often struggle with preserving their hard-earned equity throughout the startup life cycle. Got Revenue?

Equity 52

Equity Start-ups Finance Marketability 52

Biz Equity

APRIL 13, 2023

In fact, it’s normal for restaurants not to be profitable in the first year of business, which is why securing startup loans and other forms of capital is so important. In fact, it’s normal for restaurants not to be profitable in the first year of business, which is why securing startup loans and other forms of capital is so important.

Equity 98

Equity EBITDA Business Valuation Technology 98

Equidam

SEPTEMBER 20, 2022

This may result, on average, in a slight valuation increase. 1 | Average valuations used in the Scorecard Method and maximum valuations used in the Checklist Method. 2 | Discount rate components used in the two DCF methods. Last year, startups raised funding at record rates. What’s changing. The Equidam Team.

Specific Risk 52

Specific Risk Marketability Equity 52

Equidam

AUGUST 31, 2023

This may result, on average, in a slight valuation decrease. What’s changing 1 | Average valuations used in the Scorecard Method and maximum valuations used in the Checklist Method We base our estimates on real transactions by country since June 1st, 2020.

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Equidam

APRIL 3, 2024

At the heart of every conversation between AI startup founders and potential investors, lies a question that neither side feels particularly confident answering: “What is the market size?” Early stage startups can pivot at any time, but one of the hardest things to change is the target market.

Marketability 69

Marketability Start-ups Technology 69

Equidam

JANUARY 26, 2022

For early stage startups, multi-year financial projections may feel too speculative to be a good use of your time, but there’s no avoiding them. In the early days of a startup, financial projections seem like fantasy. Use startup stage benchmarks. Use industry benchmarks. Make your model easy to change and stress test.

Start-ups 52

Start-ups Marketability 52

Lighter Capital

AUGUST 31, 2023

Tracking EBITDA margin over time and comparing it to both industry averages and similar competitors helps assess the health of a business and determine future strategies. VCs and investors frequently use EBITDA to evaluate potential growth capital investments, determine company valuation s , and guide business acquisitions.

EBITDA 52

EBITDA Start-ups Finance Equity 52

Lighter Capital

NOVEMBER 17, 2022

Determining your startup’s valuation is one of the more difficult tasks you’ll face as a founder. Getting it wrong can cost you equity and diminish future capital investments — and in some cases it could lead your startup to fail. Why valuing startups is so challenging. How to determine and defend your SaaS valuation.

Equity 52

Equity Start-ups Marketability Finance 52

Lighter Capital

AUGUST 3, 2022

VCs Set New Records Backing Startups in 2021 2021 was a record-setting year for VC firms and the startups they backed. With over $340 billion in deal value and more than 17,000 fundraising rounds, everyone focused on hockey stick revenue growth potential. Interest rates. Valuations. Pitchbook. ). percentage points.).

Finance 52

Finance Equity Marketability Business Valuation 52

Equilest

AUGUST 3, 2023

It helps stakeholders make informed decisions based on the asset's market value and potential for future growth. Funding valuation, also known as pre-money valuation, comes into play during the early stages of a startup or a growing business seeking external funding. What is Funding Valuation? What is Purchase Valuation?

Discounted Cash Flow 40

Discounted Cash Flow Earnings Multiplier Asset-based Approach Comparable Company Analysis 40

Valutico

AUGUST 17, 2022

Announcement: Valutico Provides an Easier Way to Value Startups. New Venture Capital (VC) method allows faster valuations of mid- to late-stage startups. The Venture Capital (VC) method is an assessment for valuing start-up and high growth businesses. For demonstrations please contact Head of Marketing, Alex Harris.

Start-ups 52

Start-ups EBIT Weighted Average Cost of Capital Discounted Cash Flow 52

Equidam

NOVEMBER 21, 2022

In this post, we’ll discuss everything that we have learned in the last 10 years performing startup valuation. Over the past 10 years, we’ve helped north of 140,000 startups to make sure valuation was not a dealbreaker when raising capital. How does the startup valuation journey start? solidifying your valuation.

Start-ups 57

Start-ups Marketability Alpha Finance 57

Lighter Capital

MARCH 4, 2023

Startup founders have a million things on their minds: building a product, hiring a team, raising capital , getting that early traction, figuring out how to scale, or frantically throwing water on whatever metaphorical fires are inevitably burning. If you want to scale your startup you need, at the very least, a positive CLV to CAC ratio.

Start-ups 52

Start-ups Marketability Finance 52

Equidam

MAY 2, 2022

There’s no shortage of content covering startup fundraising advice, whether it’s solidifying your valuation or financial projections , or timing your fundraising sprints. In this article we’ll look at a few of the often-overlooked factors which might inform when to raise capital for your startup, and how much you might look to raise.

Start-ups 84

Start-ups Equity B2C Technology 84

Brian DeChesare

APRIL 6, 2022

Here’s a quick explanation of each vertical: Consumer Staples: These companies make products that the average person uses with predictable frequency regardless of the economic environment. Doesn’t the average person need a car more than a bottle of whiskey or a box of cigars? clothing companies) are also here.

Banking 97

Banking Start-ups Equity Marketability 97

Brian DeChesare

MAY 3, 2023

The DDM is a horrible idea for tech/biotech startups and anything else in the “growth” category with unstable or unpredictable cash flows. You usually link Revenue to market share * market size or units sold * average selling price, with expenses linked to Capacity, unit sales, or another top-level driver.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

JULY 12, 2023

Depending on your source, a VC case study might consist of a “cap table” exercise where you calculate the company’s ownership over many investment rounds and the proceeds to each group upon exit… …but it could also be a qualitative discussion of a market, an evaluation of a specific startup, or even a simple 3-statement model.

Banking 52

Banking Marketability Compliance Finance 52

FE International

MARCH 23, 2022

The main differences come down to the size and growth of the businesses in question, as we explore in depth below. The owner is likely to pay themselves a salary for the work – which may not be correlated with the market rate and pay several personal items through the business for tax efficiency.

EBITDA 105

EBITDA Start-ups Business Valuation Marketability 105

Brian DeChesare

NOVEMBER 9, 2022

Non-Trading – This could include anything from risk management to fintech/startups to regulatory agency work to other groups at your current firm. If you’re aiming for non-trading roles (risk management, startups, regulatory agency, etc.), If you’re interested in any of these, you should transfer into investment banking ASAP.

Banking 74

Banking Equity Start-ups Marketability 74

FE International

APRIL 13, 2022

In mid-2021, we noted that the US could raise federal tax rates for wealthy investors to as much as 43.4%. Acquirers have benefitted from historically low-interest rates and many sellers have opted to exit while the market is strong with growing multiples. Furthermore, the market’s growth will accelerate at a CAGR of 11.35%.

Private Equity Firm 52

Private Equity Firm Equity B2C Start-ups 52

Brian DeChesare

AUGUST 31, 2022

Convertible Arbitrage Definition: Convertible arbitrage is a relative value strategy in which a hedge fund profits based on the pricing discrepancy between a company’s convertible bonds and its underlying stock; the fund exploits changes in volatility, credit quality, and interest rates to make money while minimizing overall market risk.

Banking 67

Banking Risk-free Rate Equity Start-ups 67

Brian DeChesare

NOVEMBER 1, 2023

When you hear the words “healthcare private equity,” two thoughts probably come to mind: Wait a minute, isn’t healthcare a risky/growth-oriented sector? They do not invest in risky biotech startups attempting to cure cancer (at least not within their traditional PE portfolios). Why do PE firms operate there? For example, in the U.S.,

Equity 59

Equity Private Equity Firm Start-ups Banking 59

Reynolds Holding

APRIL 5, 2023

These laws, the first of which was enacted in 1933, benefit investors, issuers ranging from startups to multinational corporations, and the markets in the middle. Growth and Change in the Markets We’ve seen tremendous growth and change in our markets. Such growth and rapid change also means more possibility for wrongdoing.

Marketability 45

Marketability Technology Data Analysis Corporate Finance 45

Cooley M&A

FEBRUARY 1, 2024

2023’s much-discussed downturn in mergers & acquisitions – with global M&A volume and value down 6% and 17%, respectively, from 2022 – was largely driven by the slowdown in the tech sector, with global tech M&A volumes down 51% year over year, while other sectors saw marked increases. [1] billion leading the pack.

Equity 59

Equity Finance Marketability Start-ups 59

Benzinga

APRIL 27, 2023

The first quarter's freight market, consisting of a combination of freight rates and volumes, has materially softened compared to a year ago and has remained soft throughout April. CHATTANOOGA, Tenn., April 27, 2023 (GLOBE NEWSWIRE) -- Covenant Logistics Group, Inc. See Subsequent Event: Acquisition for additional information.

Marketability 40

Marketability Intangible Assets Enterprise Value EBITDA 40

Valutico

AUGUST 23, 2023

A common way to value a private company is by using the Discounted Cash Flow (DCF) or a Comparable Company Analysis (CCA), and by taking into account factors such as financial performance, growth prospects, industry dynamics, and risk factors. One example is the Venture Capital valuation method which is sometimes used to value startups.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Valutico

AUGUST 10, 2023

A common way to value a private company is by using the Discounted Cash Flow (DCF) or a Comparable Company Analysis (CCA), and by taking into account factors such as financial performance, growth prospects, industry dynamics, and risk factors. One example is the Venture Capital valuation method which is sometimes used to value startups.

Discounted Cash Flow 52

Discounted Cash Flow Comparable Company Analysis EBITDA Enterprise Value 52

Brian DeChesare

OCTOBER 12, 2022

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. That said, much of it is better than the junk found on generic websites about how to start a hedge fund. How to Start a Private Equity Firm: People, Experience, and Capital.

Private Equity Firm 59

Private Equity Firm Equity Start-ups Marketability 59

Equidam

SEPTEMBER 20, 2022

You can refer to the table below to see how the average valuation for the Scorecard Method and maximum valuation for the Checklist Method will change for your country specifically after October 10th, 2022. Old Scorecard Average. New Scorecard Average. In 2021, American VC-backed startups raised $329.9 612.100.000.

Marketability 40

Marketability Finance 40

Brian DeChesare

SEPTEMBER 13, 2023

For example, let’s say a tech startup with no Debt goes public, and its stock price soars from $10 to $200 and then falls to $30. This company is not distressed; it’s an overhyped tech startup that came crashing down. Distressed investing offers equity-like returns with lower risk.”

Equity 88

Equity Banking EBITDA Start-ups 88

Reynolds Holding

NOVEMBER 22, 2022

We show that VCs are more likely to invest in startups started by students graduating from the universities with no-loan financial aid policies. This effect is economically large and corresponds to an increase of $8 million invested by venture capitalists on average. Student loans are becoming a major challenge for the United States.

Start-ups 59

Start-ups Finance 59

FE International

JANUARY 3, 2021

Average revenue or net earnings numbers for independent e-commerce stores using platforms like Shopify, Magento, WooCommerce–or running custom hosted solutions–can be difficult to come by. Streamlined Logistics and Fulfillment. Inventory Management. Formalized Supplier Relationships. Technology. Reducing Technical Burden. Legal and Escrow.

EBITDA 59

EBITDA Start-ups Finance eCommerce 59