Lighter Capital

AUGUST 10, 2023

If you’re a founder at an early stage SaaS startup, you’re always looking for ways to drive higher and higher company valuations, especially as you move from one round of funding to the next. While there are many startup valuation methods , one of the most prominent methods used for SaaS startups is the multiples method.

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RNC

JANUARY 12, 2023

ESOPs are often a valuable tool for startup businesses, as they can help to attract and retain talented employees and align the interests of employees with those of the company. Read on if you’re interested in learning why and how ESOP valuation works so well for startups. What is ESOP valuation?

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Startup Valuation Blog

MARCH 15, 2022

Do you want to increase the value of a startup? . . How To Increase The Value Of A Startup? The startup time of the business is the high time that analyzes the future success rate of the business. Any decision that is made in the startup period of the business has an effect on its future growth. Introduction.

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Equidam

JULY 14, 2022

In an analysis of the market, Justin Kahl and David George of Andreessen Horowitz showcase data on how public companies have seen their revenue multiples shrink by an average of 60%, with large sector variability. But are valuations really down? For all startups? If so, why, and what can we expect in the short and mid-term?

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Equidam

FEBRUARY 15, 2023

The valuation of early stage companies is a one of the more complex and contentious topic in the startup world. One topic which allows us to peer deeper into the logic behind early stage valuation is the role of financial projections. How can they possibly be accurate or believable? It’s all optimistic guesswork!

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Sharp Sheets

APRIL 19, 2022

There are a number of startup valuation methodologies. Although none of them are perfect (as explained in our article here), they all try to calculate a valuation for a business based on certain factors. By far the most common methodology investors use to value startups is the Venture Capital Valuation Method.

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Equidam

FEBRUARY 16, 2024

On February 29th, 2024, you’ll be upgraded to the latest version of Equidam, with updated valuation parameters. This update may result, on average, in a slight valuation decrease. To help explain why, we have provided more detailed analysis in the article below. You will be able to see these parameters in your valuation reports.

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Brian DeChesare

SEPTEMBER 20, 2023

There are better and worse explanations for your answers, but in the absence of time travel, VC interviewers can’t determine if your startup investment pitch was “correct.” Market and Investment Questions – Which startup would you invest in? How would you analyze a potential investment and make a decision?

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RNC

JANUARY 16, 2024

Introduction: Within the ever-changing startup landscape, stock options may play a significant role in an employee’s benefits package. Even if they have the potential to yield large financial gains, startup equity presents a complex terrain that calls for careful thought and deliberate planning.

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Equity Banking Intangible Assets Marketability 52

Lighter Capital

SEPTEMBER 28, 2023

When “growth at any cost” was the name of the game in tech, founders could breeze by without calculating and comparing their startup’s EBITDA margin. An EBITDA margin is the ratio of EBITDA to revenue; it shows how operating expenses are eating into a company’s profits. That is, in part, why EBITDA margins have become so important.

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Lighter Capital

JANUARY 12, 2024

There comes a time in a startup's journey to success when entrepreneurs need to raise their first round of growth capital. When you first had that great idea, you may have raised money from friends and family or seed capital from angel investors to get your startup off the ground. What's next? Well, of course, it depends.

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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. These valuations are much more subjective.).

Equity 52

Equity Start-ups Marketability Finance 52

Equidam

JUNE 10, 2022

In 2013 equity crowdfunding was making headlines as the new frontier for startup investment. Especially when it comes to valuation. Any regular user of Crowdfunding platforms will be aware of how often founders are asked to justify their valuation by retail investors. In this article, we’ll help you to do exactly that.

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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?” So why do investors ask it all the time? Most founders struggle with the market size question. Tricky to estimate, but $203.72B.

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Marketability Start-ups Technology 69

Sharp Sheets

AUGUST 4, 2021

A lot has been written about how to value startups. In this article we will explain what methods are truly used by venture capital firms and angel investors to value your startup, whether you are pre-seed or Series B. Why do we even value startups? Often, we value a startup when it raises capital….

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Equidam

SEPTEMBER 11, 2023

A question that comes up fairly often in our workshops: “What is a good valuation for my startup?”. It may seem simplistic, but the question recognises that the process of valuation has some inherent flexibility. On the other hand, the valuation is ultimately a subjective reflection of your own ambition for the company.

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Startup Valuation Blog

AUGUST 2, 2022

An angel investor is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Have you wondered What angel investors want from a startup? How much cash does the company have in the bank? What is the current valuation? Reliable management.

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Equidam

JUNE 8, 2023

For over a decade Equidam has supported founders (and investors) with the challenge of setting a fair valuation for their ventures. When we started, in 2012, valuation was a hot topic in the fundraising process and venture capital was not as easy to come by. Today, valuation matters again.

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Start-ups Finance Equity Marketability 77

Equidam

AUGUST 11, 2022

TLDR: For startups, 3 years is the most common. 5 years if you are in a later stage (Series B+) or if your business is more predictable, or if your startup potential can only be expressed in a longer time horizon. You are trading off showing more of your startup potential vs having credible forecasts. How will investors react?

Start-ups 85

Start-ups Banking Marketability 85

Equidam

JULY 27, 2023

If hype spreads like fire, then 2023 is a relatively low-oxygen environment for startups and a certain amount of pragmatism is required. The wrench in the machine for valuation An AI model could, in theory, look at the past performance of a pool of startups, and derive a set of trends which should be positive signals for the future.

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Equidam

SEPTEMBER 15, 2022

You screen a tremendous number of startups, pick a handful, and hope a few of those will grow up to become unicorns. You are asked to estimate how well a startup will do, in order to ascertain a fair and attractive price – while knowing that being left out of one or two potential trillion-dollar deals could cost you your job later on.

Start-ups 89

Start-ups Marketability Equity Technology 89

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. solidifying your valuation. negotiating with investors.

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Start-ups Marketability Alpha Finance 57

Lighter Capital

AUGUST 31, 2023

Before we show you how to calculate EBITDA margin and how to interpret it, we’ll define EBITDA, discuss its importance, and clarify how EBITDA margin compares to other profitability measures. Why is EBITDA important? This percentage indicates how much of a company’s operating expenses are eating into profits.

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EBITDA Start-ups Finance Equity 52

Equidam

JULY 18, 2022

Neither side of the deal will be experienced with valuation or investment, so the formula really only makes sense if you are both shouldering risk in equal proportions. What makes a valuation fair? Valuation is the calculation of risk vs reward. How quickly will they be looking at a pre-seed or seed round?

Start-ups 77

Start-ups Equity Marketability 77

RNC

NOVEMBER 9, 2022

ESOP valuation is a necessary aspect of ESOP. Why is ESOP Valuation Necessary? An ESOP valuation or a Sweat Equity valuation can only be done by a SEBI-registered (Cat-I) Merchant Banker as per the Indian Income Tax Law. ESOP valuation is critical to a company in its entirety. What are ESOPs in India?

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Equidam

JUNE 7, 2022

There’s never been so much capital available for startups… and there has never been so many startups chasing it. Startups in pre-seed or seed stage aren’t as capital intensive as they used to be. To answer why this is happening now, we propose that it’s not that startups are now overvalued. So what’s behind this?

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Start-ups Finance Equity Marketability 52

Lighter Capital

FEBRUARY 1, 2023

For some startups, venture debt can be a solid option to boost cash flow and supplement a VC round with very little dilution to their remaining equity. Venture debt is, as the name implies, a debt funding mechanism available only to venture-backed, early- and growth-stage startups. How is venture debt different from convertible debt?

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Startup Valuation Blog

NOVEMBER 16, 2021

According to Equitest's Review on techozens.com - Equitest is: "The Best & Trusted Business Appraisal Software for Startups, CPA". Choosing the right Online Business Valuation Tool plays an important role in any business life. Have you ever wondered how much does your company worth? Here are the main points of the review. ".

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Appraisal Business Valuation Discounted Cash Flow Start-ups 100

Lighter Capital

JULY 20, 2023

While a well-capitalized venture with several million dollars in the bank can behave like a large, established company from the jump, a bootstrapped startup has to manage cash more carefully, growing at a rate they can afford and control. Why do startups use debt financing? It’s best to start with the basics.

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Lighter Capital

AUGUST 30, 2023

Gross profit margin (GPM) can tell you a lot about a SaaS startup's profitability and the efficiency of their operations. It's also a key financial metric that potential investors use to evaluate startups for funding and to determine their valuation. SaaS startups, however, often miscalculate their margins and their runways.

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Lighter Capital

SEPTEMBER 1, 2023

Gross margin is important for several reasons: It puts your startup on the path to profitability, It’s a good indicator of scalability; and Investors use it to evaluate and value your startup. A low gross margin typically indicates low operational efficiency, which creates challenges for scaling your startup.

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Lighter Capital

JANUARY 11, 2022

At Lighter Capital, our Investment Team encounters a lot of questions from startup founders about the features of our financing solutions, such as early payoff provisions, minimum return requirements, warrants, debt covenants , and even whether we require a personal guarantee. How do warrants work? Why are warrants risky for startups?

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Equilest

MARCH 27, 2023

Read more about how Equitest can help you make informed decisions about your business's value and future growth. Sign up now to get started! When it comes to business valuation, it's important to find a reliable and accurate method to determine the worth of your business. Table of Contents Introduction What is Equitest?

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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. Founders can follow a pretty solid roadmap once they decide to pull the trigger, but how do you know when the time is right? Milestones.

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Brian DeChesare

MARCH 13, 2024

The Top Growth Equity Firms Why Did Growth Equity Get So Popular? Valuations are high, the returns depend on future growth, and deals are for primary capital , i.e., new cash the business needs. Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms.

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Equidam

FEBRUARY 3, 2022

“Equidam helped us understand where we should be on the market and provided assistance with negotiating valuation. What’s your view on the renewable energy sector in the US, and how are you helping push that forward? We spoke to their CEO, Omeed Badkoobeh, about what they do, and their fundraising journey so far.

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Equilest

JUNE 9, 2023

How Business Valuation Software Can Enhance Accuracy and Objectivity in Valuations Valuation bias refers to the tendency of individuals to systematically misjudge the value of an asset or investment due to psychological and cognitive biases. Understanding Valuation Bias 2.1 What is Valuation Bias?

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