Working on your customer base potential is the first step to building reliable financial projections for startups. The revenue model that you choose (which types of customers will be charged, how much, and how) defines how you set up your entire business. Many startups decide to focus on a fast-growth with technology development and/or customer[…]
The first step to take to take to build your financial projectsions, after the market analysis and validation, is therefore laying out the expansion strategy with realistic figures. We start from calculating the Total Addressable Market (TAM). Depending on your sector, you can calculate this in terms of value, volume or number of customers. Value is[…]
Any financial plan should start from an analysis of the market. For startups, this is fundamental as product-market fit is still largely unknown or only a hypothesis until a stable revenue is achieved. After the market analysis, validation and drawing your business model, including your potential long-term strategy, it is time to put everything to[…]
Trees grow in size by first expanding their roots in the soil. Every specie of tree is different and it may need a different structure and acidity of the soil. Some need larger and deeper spaces to grow their roots to develop to their full potential, some need less. Different species grow at different speeds,[…]
What was once a myth and rarity is now an everyday story. ‘Unicorns’ are private startups whose valuations have reached $ 1 billion +. Reading out the mythological background of the unicorn out of curiosity, the King of Ethiopia claimed that “it is impossible to take this ferocious beast alive; and that all its strength[…]
As a valuation professional, explaining what value is and how you get to it, is sometimes a challenge. There are so many transactions in the market, especially at the early stages, that concepts have to be simplified to be able to negotiate quickly and effectively. The valuation then becomes a value that you agree on[…]
The development of technology is uncertain, new industries can be created by the market leaders, the commitment and implementation skills of the team are difficult to foresee, much of the investment decision comes down to negotiations. Considering all this, why bother looking into the numbers? Especially for those with purely a technology and marketing background,[…]
Smart money from startup investors follows ever changing trends in terms of sector, region, stage, and instrument. Startup investors, including business angels, VCs, family offices and corporate VCs can invest directly into startup investment rounds, or join co-investment funds, syndicates or invest in other funds. Funds are increasingly set up as specialised sector funds. They[…]
Something that almost all entrepreneurs need to deal with embarking on a new venture is raising funds. That’s when they start preparing a financial plan, explore different strategies and demonstrate that their venture has value. When you have a vision of where you want to take your company from the early stage though, your financing[…]
Value is not always what you think. In the startup world, everyone is talking about it, tech news are filled with funding round valuation analysis and exit stories. Yet the talk often only touches the surface of what there is to know about the valuation of early-stage investments, or even the valuation of any company[…]