Preferred Stock
Ebedded Derivatives
Insider Vs. External Funding
Value Benchmarks
Control Premiums
% of Dilution
Earn-out Model
Judgements
Contingent Considerations
Observable Deal Prices
Assumptions
Multi-growth Stages
Calibrations
Share Based Payments
Growth Assets
Risks
Beta Values

Venture Capital Investments

Lifecycle

Called as a further issue of shares, valuation of VC’s investments is compulsory by registered valuer[Section 62(1)(c)]. The average age of Company raising Series A funding is 3 to 4 years. Overvalued companies at Seed Level may end up in a death trap as VCs may not proceed with Series A and Series B funding. This is because VCs do not get 2x or 3x returns from their investment at Seed Level. Hence, identifying realistic valuation at all levels of funding is a crucial part. Here, the value (science) facilitates the pricing (transaction).

Venture Capital Investments

Lifecycle

Called as a further issue of shares, valuation of VC’s investments is compulsory by registered valuer[Section 62(1)(c)]. The average age of Company raising Series A funding is 3 to 4 years. Overvalued companies at Seed Level may end up in a death trap as VCS may not proceed with Series A and Series B funding. This is because VCs do not get 2x or 3x returns from their investment at Seed Level. Hence, identifying realistic valuation at all levels of funding is a crucial part. Here, value (science) facilitatespricing (transaction).

Buy Side

Sell Side

Have more questions?

 

Possibility of failure

Small revenues and operating losses

Existence of ESOP

Valuation Complexities

Private entity (non-comparable listed entities

Heavy R&D expenses

Young companies with short histories

Analysing potential to survive

Valuation Complexities

High growth potential

No revenues and operating losses

Uncertain call future potential

Primary asset = IP

Expected ESOP

Negative bottom line

Private entity (non-comparable
listed entities)

How can we help you?

Application of defendable judgements

Considering efficiency of existing assets and value of growth assets

Data driven assumptions

Proper consideration of Share Based
Payment by our IFRS Experts

Observable Deal Prices from Global Database

Analysing beta against market index

Calibration to Price of Recent Investments

Reflect entity specific risks

Identifying multi-growth stages and adjust
forward looking revenues and profits

How can we help you?

Application of defendable judgements

Data driven assumptions

Observable Deal Prices from Global Database

Calibration to Price of Recent Investments

Identifying multi-growth stages and adjust forward looking revenues and profits

Considering efficiency of existing assets and value of growth assets

Proper consideration of Share Based
Payment by our IFRS Experts

Analysing beta against market index

Reflect entity specific risks

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