“Innovation and Entrepreneurship”: useful 1985 strategy insights for today’s startup world

“Innovation and Entrepreneurship”: useful 1985 strategy insights for today’s startup world

Reading Peter F. Drucker’s 1985 book, ‘Innovation and Entrepreneurship’, it became clear that, despite a few trends that are no longer relevant today, many concepts are still very much relevant for startup entrepreneurship today. Peter Drucker has been described as “the founder of modern management”. According to Drucker, entrepreneurs should take advantage of a “window” Read more about “Innovation and Entrepreneurship”: useful 1985 strategy insights for today’s startup world[…]

WHAT IS THE SPIRIT ANIMAL OF YOUR COMPANY?

WHAT IS THE SPIRIT ANIMAL OF YOUR COMPANY?

We have heard much about the so-called unicorns since Aileen Lee first coined the term 6 years ago, that we’ve forgotten about real companies. The term unicorn refers to private startups that have reached 1-billion dollar in valuation. These are companies that have grown beyond any reasonable expectations. But let’s be honest, unicorns, even if Read more about WHAT IS THE SPIRIT ANIMAL OF YOUR COMPANY?[…]

DIFFERENCES BETWEEN STARTUP VALUATION & STANDARD VALUATION PRACTICES

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 Read more about DIFFERENCES BETWEEN STARTUP VALUATION & STANDARD VALUATION PRACTICES[…]

BUSINESS VALUATION: WHAT ARE MY OPTIONS?

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 Read more about BUSINESS VALUATION: WHAT ARE MY OPTIONS?[…]

HOW TO CALCULATE REVENUE & COSTS PROJECTIONS

HOW TO CALCULATE REVENUE & COSTS PROJECTIONS

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 Read more about HOW TO CALCULATE REVENUE & COSTS PROJECTIONS[…]

HOW TO CALCULATE YOUR MARKET EXPANSION

HOW TO CALCULATE YOUR MARKET EXPANSION

The first step to take to take to build your financial projections, 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 Read more about HOW TO CALCULATE YOUR MARKET EXPANSION[…]

WHAT KIND OF SOIL YOU NEED TO GROW YOUR ROOTS: DEFINING THE MARKET

WHAT KIND OF SOIL YOU NEED TO GROW YOUR ROOTS: DEFINING THE MARKET

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, Read more about WHAT KIND OF SOIL YOU NEED TO GROW YOUR ROOTS: DEFINING THE MARKET[…]

YOUR VALUATION IS NOT FIXED IN STONE

YOUR VALUATION IS NOT FIXED IN STONE

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 Read more about YOUR VALUATION IS NOT FIXED IN STONE[…]

FINANCIALS OF EARLY-STAGE STARTUPS: DO THEY MATTER?

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, Read more about FINANCIALS OF EARLY-STAGE STARTUPS: DO THEY MATTER?[…]

FUNDING CYCLES AND THE STARTUP STORY GO HAND IN HAND

FUNDING CYCLES AND THE STARTUP STORY GO HAND IN HAND

Something that almost all entrepreneurs need to deal with when embarking on a new venture is raising funds. That’s when they start exploring 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, your financing strategy will go along Read more about FUNDING CYCLES AND THE STARTUP STORY GO HAND IN HAND[…]

HOW THE EUROPEAN UNION INVESTS IN INNOVATIVE PROJECTS

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 Read more about HOW THE EUROPEAN UNION INVESTS IN INNOVATIVE PROJECTS[…]

DAMODARAN ON NARRATIVE AND NUMBERS IN VALUATION

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 Read more about DAMODARAN ON NARRATIVE AND NUMBERS IN VALUATION[…]

DECODING THE VALUATION PROCESS

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, Read more about DECODING THE VALUATION PROCESS[…]

AUSTRIAN, GERMAN AND ITALIAN VALUATION STANDARDS AT A GLANCE

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 Read more about AUSTRIAN, GERMAN AND ITALIAN VALUATION STANDARDS AT A GLANCE[…]

WHO CAN VALUE YOUR COMPANY?

WHO CAN VALUE YOUR COMPANY?

  Business valuation is a constantly evolving science, shaped by empirical research, opinions of leading experts and the judgement of the valuer. It is impossible to pinpoint the exact intrinsic value of a company, so all methods are aimed at detecting and quantifying as many factors as possible that can have an influence on the Read more about WHO CAN VALUE YOUR COMPANY?[…]

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