Brian DeChesare

SEPTEMBER 20, 2023

But there is a decent reason for all this: It’s much harder to write an article about VC interview questions since they are far less standardized than IB interview questions or PE interviews. Categories of Venture Capital Interview Questions I would split VC interview questions into 6 main categories. Which markets should we avoid?

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Lighter Capital

FEBRUARY 12, 2024

Equity dilution is simply the result of supply and demand. To grow the business, founders and co-founders often sell an ownership stake in the company, or equity , to investors to raise capital; many will also issue equity to hire and compensate early team members. Think of equity shares as pieces of a pie.

Equity 52

Equity Start-ups Finance Marketability 52

Musings on Markets

MAY 7, 2023

I also used the banking framework to argue that good banks have stickier deposits, with a higher precent of these deposits being non-interest bearing, that they invest in loans and investment securities on which they earn interest rates that cover and exceed the default risk in these investments. All Equity, All the time!

Banking 63

Banking Price to Book Dividends Book Value 63

Musings on Markets

JANUARY 19, 2022

Leading into 2021, the big questions facing investors were about how quickly economies would recover from COVID, with the assumption that the virus would fade during the year, and the pressures that the resulting growth would put on inflation. The year that was.

Risk Premium 80

Risk Premium Risk-free Rate Start-ups Equity 80

Musings on Markets

NOVEMBER 15, 2022

In my first two posts on Facebook, I noted that its most recent earnings report, and the market reaction to it, offers an opportunity for us to talk about bigger issues. Facebook, I argued, is a corporate autocracy, with Mark Zuckerberg at its helm.

Start-ups 90

Start-ups Marketability Market Capitalization Technology 90

Brian DeChesare

NOVEMBER 22, 2023

I never expected to revisit the topic of bulge bracket banks so quickly because the full list changes slowly, and we updated it a few years ago. As another example, some argue that UBS should not be a bulge bracket bank because it has focused on wealth management and areas outside the capital markets.

Banking 97

Banking Start-ups Finance Equity 97

Musings on Markets

MAY 6, 2022

In this post, I will look at where we stand on inflation expectations, and the different paths we can end up on, ranging from potentially catastrophic to mostly benign. Since 2020, though, inflation has become a key story line in almost every post that I write about the overall market, and I have had multiple posts just on the topic.

Risk Premium 92

Risk Premium Treasury Start-ups Equity 92

Brian DeChesare

AUGUST 3, 2022

As investment banking internships wind down each year, interns everywhere wake up and mysteriously come up with a similar idea: “I want to switch banks for my full-time role! Unfortunately, switching banks, groups, or locations after your internship is much easier said than done. Or at least switch groups. Or maybe switch locations.”.

Banking 77

Banking Start-ups Enterprise Value Marketability 77

Musings on Markets

FEBRUARY 12, 2022

In the midst of all the action, to no one's surprise, have been six stocks (Facebook, Amazon, Netflix, Google, Apple and Microsoft or FANGAM) that have largely driven US equities for the last decade, roiling the market with their most recent earnings reports. Clearly, much has happened since these valuations. to 14.9%.

Market Capitalization 98

Market Capitalization Equity Marketability Start-ups 98

Musings on Markets

AUGUST 25, 2023

I have always loved sports, playing tennis and cricket when I was growing up, before transitioning to fan status, cheering for my favored teams from the sidelines. I also like finance, perhaps not as much as sports, but there are winners and losers in the investment game as well.

Start-ups 92

Start-ups Dividends Marketability Finance 92

Musings on Markets

DECEMBER 21, 2022

Each year, ahead of teaching my classes at NYU's Stern School of Business in the spring, I invite readers to accompany me on my journey, and this year is no different. Teaching Philosophy I have heard the old saying that "those who can do, and those who cannot teach", and I won't get defensive in response, because it may be true.

Corporate Finance 89

Corporate Finance Finance Start-ups Marketability 89

Startup Valuation Blog

NOVEMBER 16, 2021

Have you ever wondered how much does your company worth? The items mentioned in the list above are a few of the more important parameters that you should consider when selecting an Online Business Valuation Tool for your business. This article will give you an overall review of the Equitest, Online Business Valuation Tool.

Appraisal 100

Appraisal Business Valuation Discounted Cash Flow Start-ups 100

Musings on Markets

NOVEMBER 10, 2022

In my last post, I used Facebook's recent troubles to talk about the importance of corporate governance, and how we, as investors, have abandoned the power to change management at many younger tech companies in return for being able to invest in young tech companies, with growth potential and well-regarded founders.

Finance 74

Finance Start-ups Equity Equity Financing 74

Musings on Markets

NOVEMBER 9, 2021

I have been writing about, and valuing, Tesla for most of its lifetime in public markets, and while it remains a company that draws strong reactions, it is also one that I truly enjoy valuing. Tesla: The Back Story I first valued Tesla in 2013 , as a "luxury automobile company" and I have valued almost every year since.

Start-ups 99

Start-ups Dividends Marketability Market Capitalization 99

Musings on Markets

FEBRUARY 27, 2023

All that said, businesses around the world have borrowed money though time to fund their operations, sometimes for good reasons and sometimes for bad, and over time, these businesses have also faced cycles of too much debt leading to painful cleansing.

Equity 52

Equity EBITDA Start-ups Net Debt 52

Brian DeChesare

MAY 3, 2023

When I started offering financial modeling training , I never expected to get questions about a methodology like the Dividend Discount Model (DDM). But people who aim for investment banking roles are very much into those bells and whistles, so questions about the DDM and other “exotic” methodologies began rolling in.

Dividends 64

Dividends Terminal Value Enterprise Value Equity 64

Brian DeChesare

JUNE 21, 2023

Specifically, should you aim for entry-level investment banking roles in Dubai rather than London, New York, or other financial centers? But I would be careful about reading too much into this because Dubai doesn’t necessarily defy long-term trends for long. are much less active.

Banking 96

Banking Start-ups Finance Equity 96

Musings on Markets

JANUARY 27, 2022

Inflation numbers have been coming in high now, for more than a year, but for much of the early part of 2021, bankers, investors and politicians seemed to be either in denial or casually dismissive of its potential for damage. Rather than repeat much of that post, let me summarize my key points.

Risk-free Rate 84

Risk-free Rate Treasury Price to Book Start-ups 84

Value Scope

APRIL 9, 2021

Margaret Wolfe Hungerford (née Hamilton), who authored many books, often under the pseudonym of ‘The Duchess’ When I think about value, I (like most in my profession) think first about fair market value (“FMV”). And what is the value of the pleasure I derive from the car, the drive, the fun, and its aesthetic beauty?

Fair Market Value 130

Fair Market Value Marketability Finance Intangible Assets 130

Value Scope

APRIL 9, 2021

Margaret Wolfe Hungerford (née Hamilton), who authored many books, often under the pseudonym of ‘The Duchess’ When I think about value, I (like most in my profession) think first about fair market value (“FMV”). And what is the value of the pleasure I derive from the car, the drive, the fun, and its aesthetic beauty?

Fair Market Value 130

Fair Market Value Marketability Finance Intangible Assets 130

Brian DeChesare

AUGUST 16, 2023

As with investment banking in Hong Kong , I can summarize private equity in China in one sentence: “If you’re not Chinese, don’t even think about it, and even if you are Chinese, it’s best if you have great connections within the CCP and want to stay in China long-term.”

Equity 70

Equity Banking Start-ups Private Equity Firm 70

Musings on Markets

JULY 27, 2022

On July 21, 2021, I valued Zomato just ahead of its initial public offering at about ? In this post, I will begin with a quick review of my 2021 valuation, then move on to the price action in 2021 and 2022 and then update my valuation to reflect the company's current numbers. 41 per share. 169 per share in late 2021. 76 per share.

Risk Premium 81

Risk Premium Start-ups Equity Marketability 81

Musings on Markets

JANUARY 30, 2023

If 2022 was an unsettling year for equities, as I noted in my second data post, it was an even more tumultuous year for the bond market. As a result of these rate changes, the term structure which started the year as upward sloping, ended the year downward sloping, giving rise to the usual talk of an imminent recession.

Treasury 74

Treasury Start-ups Risk Premium Equity 74

Musings on Markets

MAY 5, 2023

The overarching questions for us all are whether this crisis will spread to the rest of the economy and market, as it did in 2008, and how banking as a business, at least in the US, will be reshaped by this crisis, and while I am more a dabbler than an expert in banking, I am going to try answering those questions.

Banking 76

Banking Equity Start-ups Treasury 76

Lighter Capital

FEBRUARY 5, 2021

If you already have a functional prototype and a business plan and you've burned through much of your initial money, then you’re ready to start raising real capital for your startup. There are several natural questions that come up at this point: Where can I find the money I need? And how much money should I raise?

Start-ups 52

Start-ups Equity Marketability Finance 52

Musings on Markets

FEBRUARY 10, 2021

In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies. What is a hurdle rate?

Risk-free Rate 52

Risk-free Rate Risk Premium Start-ups Equity 52

Brian DeChesare

APRIL 5, 2023

The pitch is that you do a mix of high-level “macro” work and occasional “micro” work, such as direct investments, you may get to live in exotic locations and pay less in taxes, and you work much more normal hours than in other finance jobs. Some SWFs operate like long-only asset managers (i.e.,

Equity 59

Equity Start-ups Private Equity Firm Banking 59

Reynolds Holding

AUGUST 23, 2023

The reality, however, is much more complicated. In a recent article , I show that one of the main barriers to startup finance is an overlooked web of corporate law rules governing private companies’ boards, shares, and shareholders’ agreements, which I refer to as Startup Corporate Law or SCL.

Finance 52

Finance Marketability Equity 52

Musings on Markets

FEBRUARY 27, 2022

In this post, I will look at corporate profitability, in all its different dimensions, and how companies across the globe, and across industries, measured up in the most recent years.

Start-ups 80

Start-ups Equity Book Value Marketability 80

Brian DeChesare

AUGUST 23, 2023

I recommend the following steps, detailed below: Step 1: Figure Out Why You Didn’t Get a Return Offer Step 2: Pick Your Best Next Move Step 3: Network and Prepare for Interviews Step 4: Reevaluate Your Options If Nothing Worked What is a “Return Offer”? While it may feel like the end of the world, you are not actually back at square one.

Banking 52

Banking Start-ups Finance Marketability 52

Brian DeChesare

AUGUST 31, 2022

Convertible bonds are hybrid instruments with elements of debt and equity, and some groups that trade convertible bonds also combine elements of S&T and IB. If you’re using a strategy like long/short equity , you could long or short a company’s stock, and your results would depend heavily on the stock market’s overall direction.

Banking 64

Banking Risk-free Rate Equity Start-ups 64

Musings on Markets

APRIL 21, 2022

I am not a prolific user of social media platforms, completely inactive on Facebook and a casual lurker on LinkedIn, but I do use Twitter occasionally, and have done so for a long time, with my first tweet in April 2009, making me ancient by Twitter standards. billion, well below the $9.6 billion, with a value per share of $10.91.

Start-ups 99

Start-ups Marketability Technology Market Capitalization 99

Brian DeChesare

JUNE 15, 2022

People say these roles pay less, offer boring/repetitive work, and do not give you many exit opportunities. There is some truth to these complaints, but I don’t think they’re 100% accurate. First, note that these terms apply only to investment banks and related finance firms (private equity firms, hedge funds, etc.).

Banking 90

Banking Treasury Start-ups Finance 90

Reynolds Holding

MARCH 5, 2024

Chair Gary Gensler has since warned crypto industry participants that they “ should do their work within the bounds of the law, or they shouldn’t do it at all.” I don’t mean to suggest that these rules should be applied uncritically to cryptoasset transactions. Cryptoexchanges have naturally pushed back.

Marketability 59

Marketability Finance Compliance Equity 59

Musings on Markets

JANUARY 9, 2021

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms. So, why bother?

Risk Premium 52

Risk Premium Market Capitalization Equity Start-ups 52

Brian DeChesare

JANUARY 19, 2022

According to some, you do almost no modeling or technical work in this group, and it’s one of the easier jobs in IB, similar equity or debt capital markets. But if you read other accounts, FSG runs models, Analysts get hands-on technical work, and the hours could be longer and more stressful because your clients are private equity firms.

Private Equity Firm 72

Private Equity Firm Banking Equity Finance 72

Brian DeChesare

NOVEMBER 16, 2022

I thought about writing an article on the 2022 U.S. In the days after the elections, a much more interesting story emerged with the bankruptcy of FTX following massive fraud and a “liquidity crisis” at the company. But these statements are misleading because, in reality, SBF and FTX were never worth that much – it was a giant fraud.

Start-ups 52

Start-ups Banking Finance Technology 52