Valuations of Start-ups (X)


Objectif

Plan

  1. Venture Capital: the basics
    • Definition of VC and start-up
    • What do we really invest in?
    • The fundamental questions when analysing start-ups at a very early-stage
    • What about the financials?
  2. Enterprise Valuation
    • Definitions
    • Roles of Valuation
    • The Classical Theory: Discounted Cash Flows or Net Present Value
    • The Modern Methods for developed businesses: the Multiple approach
  3. Start-up Valuation
    • Living in a world where financial methods don’t work
    • The key principles to never forget
    • The seed case: when only ideas are on the table
    • The central case: when sales rocket but profitability is still unseen
    • Forward thinking: what could we expect as an exit value? Role in the present valuation assessment
    • The main risk of using the Price to Sales ratio
    • How to modify a valuation over time: the idea of sharing value depending on exit price  
      1. Preferred Share
      2. Options for the investors
      3. Options for the founders & employees
    • Follow-on rounds and impacts on valuation, proceeds waterfall etc.
    • Investment Processes in VC
  4. Risk Management: the portfolio and the partnership approach
    • Why should an investor always consider a portfolio rather than a single (or very limited number of) investment?
    • What should an investor look in a partnership?
    • Investment strategy and portfolio management
    • Examples of strategies and impact on the performance
    • Decision making process and managers compensation

Références

Material for this course will be given directly by the professor through a dropbox link.