DIFFERENCES BETWEEN STARTUP VALUATION & STANDARD VALUATION PRACTICES

  Business valuation dramatically reduces investment uncertainty. It is still a science under development as markets change and more information becomes available. Since valuations are forward-looking, the practice still involves a high degree of judgement. Startup valuation is based on leading practices rather than set standards. Most early-stage valuation decisions take place during negotiations, nevertheless[…]

BUSINESS VALUATION: WHAT ARE MY OPTIONS?

When deciding what type of company valuation you need, there are few options available. It usually depends on your specific situation, company size, information available (specifically when the valuation is ordered by an investor) and type of transactions, as well as the expected audience and negotiations. The purpose or transactions for which you may want a[…]

FINANCIALS OF EARLY-STAGE STARTUPS: DO THEY MATTER?

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,[…]

WHERE ARE EARLY-STAGE INVESTMENTS GOING?

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[…]

WHAT IS VALUE?

It is not always straightforward what value or valuation really means. 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[…]

Investing in Innovation

HOW THE EUROPEAN UNION INVESTS IN INNOVATIVE PROJECTS

Navigating through the countless EU projects for promoting investments into innovative companies can be challenging for entrepreneurs. The reality is that most of the direct financing takes place on a local level  – the best source to identify these financial intermediaries that have accessed European funding to finance local companies are listed directly on the official EU database ,[…]

DAMODARAN ON NARRATIVE AND NUMBERS IN VALUATION

Aswath Damodaran’s webinar on “Narrative and Numbers: A Guide to Disciplined Story Telling and Imaginative Number Crunching” on Sageworks provided some very interesting insights into different approaches to valuation. Damodaran distinguishes between those people who are more comfortable with number crunching, and the storytellers. The ‘Numbers’ people tend to think that valuation is all about[…]

DECODING THE VALUATION PROCESS

In a valuation, nothing can be viewed in isolation, you always need to consider the overall picture. However, the big picture is also made up of many sources, inputs, logical decisions and methods, without which the overall picture would no longer make sense. Because the value of a company is not to be viewed in isolation,[…]

AUSTRIAN, GERMAN AND ITALIAN VALUATION STANDARDS AT A GLANCE

Until recently few countries had released their own valuation standards. With the market demanding stronger valuation standards, many countries have started working on their own guidelines. The International Valuation Standards Council, for example, seeks to unify these standards. However, the local standards tend to go more into the technical valuation details. The OIV (Organismi Italiano di[…]