Harvard Corporate Governance

JUNE 30, 2022

Over the last few years, as many companies (particularly those with a technology focus) went public, either through traditional IPOs, direct listings or de-SPAC transactions, a very popular compensation trend emerged whereby founders and/or CEOs were granted large incentive awards with vesting tied to very challenging stock price goals.

Technology 188

Technology Equity 188

Reynolds Holding

JANUARY 24, 2024

I am pleased to support these final rules because they will better align the protections investors receive when investing in SPACs with those provided to them when investing in traditional IPOs. First is when a blank-check company raises money from the public through an IPO, what I call the SPAC blank-check IPO.

Corporate Finance 45

Corporate Finance Marketability Finance 45

Harvard Corporate Governance

JULY 29, 2022

Can We Trust the Accounting Discretion of Firms with Political Money Contributions? Tags: Capital formation , Financial reporting , IPOs , Lobbying , Political spending , Signaling. Evidence from U.S.

Banking 214

Banking Equity Technology Marketability 214

Startup Valuation Blog

OCTOBER 5, 2021

During the different stages of a startup, from seed to IPO, the ability to raise money is a question of survival. One of the main issues the investors and stockholders face during that process is the valuation issue - 'What is your company's pre-money value?',

Business Valuation 130

Business Valuation Equity Technology Marketability 130

Harvard Corporate Governance

MARCH 15, 2024

Department of the Treasury), on Monday, March 11, 2024 Tags: antimonopoly , Antitrust , Bank Holding Company Act , bank merger , Bank regulation , Brandeisian , digital assets , financial conglomerates , market power , money trust , political economy , prudential regulation , public subsidy , safety and soundness , structural regulation , Too big to (..)

Banking 100

Banking Treasury Compliance Marketability 100

Reynolds Holding

MARCH 31, 2022

I am pleased to support this proposal because, if adopted, it would strengthen disclosure, marketing standards, and gatekeeper and issuer obligations by market participants in SPACs, helping ensure that investors in these vehicles get protections similar to those when investing in traditional initial public offerings (IPOs).

Corporate Finance 45

Corporate Finance Marketability Finance 45

Musings on Markets

OCTOBER 4, 2023

If you are an equity investor, your portfolio standing at this point of 2023 and your returns for the year will be largely determined by whether you had any money invested in the "soaring seven" stocks, as well as the sector and regional skews in your investments.

Marketability 104

Marketability Start-ups Risk Premium Treasury 104

Lighter Capital

FEBRUARY 12, 2024

Pre-money, they believe their company valuation is $5M, which puts their stock price at $0.50/share. Basing a valuation target on good research and business projections is exactly the right move, but as you’ll see, pre- and post-money numbers work out quite differently. Investors will get 2.5M new shares at a price of $0.40/share.

Equity 52

Equity Start-ups Finance Marketability 52

Brian DeChesare

JULY 20, 2022

I also want to make more of a proper SPAC vs IPO comparison from the perspective of both companies and investors. The short answer is that SPACs can be reasonable alternatives to traditional IPOs for certain companies. 9:03: Part 2: SPAC vs IPO: Performance. 12:42: Part 3: SPAC vs IPO in Excel. 23:20: Recap and Summary.

Start-ups 52

Start-ups Marketability Equity 52

Reynolds Holding

DECEMBER 22, 2022

At the conception and initial public offering (IPO) of a SPAC, executive branding is all that is offered, as the SPAC has neither a product nor an operating history. Following the IPO, the SPAC’s executive team has a limited period – generally from 18 to 24 months – to find a suitable target and complete an acquisition.

Start-ups 59

Start-ups Finance Marketability 59

Reynolds Holding

NOVEMBER 28, 2022

On November 17, 2022, the Financial Industry Regulatory Authority (“FINRA”) issued a special alert to FINRA members concerning the heightened threat of fraud in small capitalization initial public offerings (“IPOs”). NYSE and NASDAQ Reactions. This information is typically provided to NASDAQ by the managing underwriter and syndicate firms.

Compliance 45

Compliance Marketability Banking Treasury 45

Brian DeChesare

JANUARY 24, 2024

They invest when companies already have revenue (like PE firms), but they do so by purchasing minority stakes , holding them, and selling in an IPO or M&A exit (like VC firms). Specifically, should we invest €60 million at a pre-money valuation of €1.2 multiple and 30% IRR? new shares get created).

Equity 104

Equity Private Equity Firm Start-ups Comps 104

Cooley M&A

AUGUST 3, 2020

It is a reasonable extrapolation – and we are nothing at Cooley if not wildly reasonable – that more operating companies are considering going public through a merger with a SPAC (commonly referred to as a backdoor IPO) since the beginning of time. Read full article. Contributors. Dave Peinsipp. Charlie Kim. John McKenna. Yvan-Claude Pierre.

Marketability 40

Marketability 40

Appraisal Rights

SEPTEMBER 9, 2021

5 Unlike traditional IPOs, SPACs do not have commercial operations at the time of the IPO, which explains why they are referred to as “blankcheck” or “shell” companies. SPAC sponsors generally raise money in IPOs for future acquisitions of other private companies.

Fair Market Value 40

Fair Market Value Start-ups Equity Marketability 40

Reynolds Holding

OCTOBER 25, 2023

On March 30, 2022, the SEC proposed much-anticipated regulations governing Special Purpose Acquisition Companies (“SPACs”), which provide an alternative route for a company to be traded on a national exchange without undertaking the cumbersome process of an initial public offering (“IPO”).

Start-ups 52

Start-ups Banking Marketability 52

Musings on Markets

JULY 27, 2022

My IPO Valuation I valued Zomato, soon after it filed its prospectus for its initial public offering, in July 2021. 41, and note that this valuation incorporates the proceeds from the IPO and adjusts the share count for the offering. I summarized my valuation in a picture: I valued the company at close to ?41, 76 per share.

Risk Premium 81

Risk Premium Start-ups Equity Marketability 81

Lighter Capital

AUGUST 10, 2023

Comparable companies If a competitor sells or IPOs, this can be a good indicator of the expected revenue multiple similar companies would receive. Getting the highest valuation you can requires giving up less of your equity — if you are raising capital using equity — which means more money in your future pocket.

Start-ups 98

Start-ups Marketability Finance Equity 98

Reynolds Holding

JANUARY 24, 2024

Following the dramatic rise in SPAC IPOs and associated de-SPAC transactions in 2020 and 2021, [1] the Commission had an opportunity to propose a harsh regulatory framework for this investment vehicle and method of accessing the capital markets. 12] XBRL Tagging in IPO Registration Statement. Disclosure Regarding de-SPAC Transactions.

Marketability 45

Marketability Corporate Finance Compliance Finance 45

Reynolds Holding

MARCH 24, 2024

The basic bargain that President Franklin Roosevelt and Congress laid out 90 years ago was that investors get to decide which risks to take so long as those companies raising money from the public make what Roosevelt called, “complete and truthful disclosure.” IPOs are IPOs, and as Aristotle once said, “treat like cases alike.”

Marketability 45

Marketability Market Risk Compliance Start-ups 45

Equidam

FEBRUARY 8, 2023

Whenever we were not able to find a significant amount of real pre-money valuations in a given country, we broadened our perspective to the closest larger geographic entity (namely, continental region and continent). You can refer to the table at this link to see how they will change for your country specifically. Thanks for using Equidam!

Specific Risk 52

Specific Risk EBITDA Marketability 52

Brian DeChesare

SEPTEMBER 20, 2023

Venture Capital Interview Questions: Markets and Investments These questions span a wide range, as they could ask you to discuss everything from the current M&A and IPO markets to specific startup sectors you like. Q: Tell me about the current IPO, M&A, and VC funding markets.

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Musings on Markets

JULY 1, 2022

The first is market momentum , since more money will be put into the riskiest asset classes, when markets are rising, because investors who benefit from these rising markets will have more capital that they are willing to risk. Risk Capital: Historical Perspective How do you track the availability and access to risk capital over time?

Marketability 88

Marketability Risk Premium Start-ups Equity 88

Reynolds Holding

FEBRUARY 15, 2024

On January 24, 2024, the Securities and Exchange Commission (SEC) adopted final rules that impose significant additional procedural and disclosure requirements on initial public offerings (IPOs) by special purpose acquisition companies (SPACs) and in business combination transactions involving SPACs (de-SPACs).

Finance 45

Finance Appraisal Marketability Treasury 45

Musings on Markets

JUNE 9, 2021

In the last three years, SPACs (special purpose acquisition companies) have given traditional IPOs a run for their money, and in this post, I look at whether they offer a better way to go public or are more of a stop on the road to a better way to go public. What is a SPAC? Going Public?

Start-ups 52

Start-ups Marketability Banking Corporate Finance 52

Equidam

SEPTEMBER 15, 2022

At the intersection of physical and monetary, prices depend on two supply and demand curves: the supply and demand for the product or service, and the supply and demand for money. Thanks to MMT, governments have a morally easier time increasing deficits and the supply of money.

Start-ups 89

Start-ups Marketability Equity Technology 89

ThomsonReuters

AUGUST 2, 2021

This blog post looks at special purpose acquisition companies (SPACs)—shell companies created for raising capital to buy an existing, privately held firm and take it public more quickly than would be possible by going the traditional initial public offering (IPO) route, and examines the SEC’s growing focus on their filings. had completed.

Corporate Finance 52

Corporate Finance Equity Finance Compliance 52

Benzinga

JANUARY 11, 2023

Flagship title, Duelz.com , offers real money gaming with unique peer-to-peer gamification and social features that improve monetization and engagement. We are pleased to announce the first acquisition since DoubleDown's IPO that we believe complements our existing social casino franchise well and exposes DoubleDown to new.

Marketability 40

Marketability Technology 40

Musings on Markets

APRIL 21, 2022

Inception to IPO Twitter was founded in 2006 by Jack Dorsey, Noah Glass, Biz Stone and Evan Williams, and its platform was launched later that year. The Rise and Fall of Jack Dorsey In the years since its IPO, the Twitter story has developed in ways that none of its founders and very few of its investors would have predicted.

Start-ups 99

Start-ups Marketability Technology Market Capitalization 99

Lighter Capital

JANUARY 11, 2022

If your startup does well, the warrant can be worth a lot of money to the lender. If the lender funds the next unicorn to a $5 billion IPO, the lender wants to get more out of the investment than their return. A debt warrant works similar to an incentive stock option for employees. How do debt warrants work?

Debt Financing 52

Debt Financing Equity Finance Start-ups 52

Value Scout

DECEMBER 15, 2022

Gibson Greeting raised the rest of the money by selling and leasing its manufacturing and distribution centers, making the actual price $54 million. Just 18 months after the deal, Gibson cashed in a $290 million IPO, taking its share price to $27.50. Borrowed money finances the buyout to pay for the investment.

Equity 52

Equity Finance Dividends Compliance 52

Cooley M&A

MARCH 2, 2021

According to Nasdaq , in 2015, SPACs made up approximately 12% of the IPO market, but by 2020, that number had risen to approximately 53%. SPACs are predicted to be an even higher percentage of the 2021 market share, with SPACs representing 79% of the January IPOs.

Corporate Finance 40

Corporate Finance Marketability Finance 40

Valutico

AUGUST 11, 2021

Last september, Snowflake made history with the biggest IPO pop since at least a decade, and since then the stock has held up these early gains. Weekly valuations: Snowflake.

EBITDA 52

EBITDA Marketability 52

Brian DeChesare

MARCH 13, 2024

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. This style is about purchasing minority stakes in cash-flow-negative-but-high-growth companies that want to scale and eventually go public or sell (think: Uber or Airbnb before their IPOs).

Equity 95

Equity Start-ups Marketability Banking 95

Equilest

SEPTEMBER 8, 2022

The cap tables get more complicated when the company raises funds, with possible funding sources, IPOs, mergers and acquisitions, and other transactions. Here is the list: Debt: Debt is money a company has borrowed and must pay back with interest over time. Pre Money Valuation: . Post Money Valuation. Authorized Shares.

Business Valuation 40

Business Valuation Equity Debt Financing Start-ups 40

Reynolds Holding

MAY 10, 2023

The stocks of many de-SPACed businesses — companies formed by the merger of a SPAC with an operating business — are trading well below the SPACs’ original IPO price, and a number have filed for bankruptcy. 3 The SPAC IPO market began to wane in late 2021 and contracted further in 2022. million of new money and roll-up of $2.5

Going Concern Value 49

Going Concern Value Finance Equity Technology 49

Lighter Capital

AUGUST 3, 2022

Mergers and acquisitions, SPACs, private equity, and IPOs helped to drive more than 1,150 exits — on average more than three per day, including holidays and weekends. High-growth tech companies, especially publicly traded entities, are down drastically, dimming the luster of IPOs. Pitchbook. ). percentage points.).

Finance 52

Finance Equity Marketability Business Valuation 52

Reynolds Holding

APRIL 26, 2022

The “ICO” designation is inspired by initial public offering (“IPO”) whereby private firms list shares on a public stock exchange and raise external capital. Binance and Coinbase). The primary source of voluntary disclosure provided by ventures prior to their ICO is a white paper. allocation of tokens to insiders).

Marketability 59

Marketability Specific Risk Finance Banking 59