Valuing Early Stage and Venture Backed Companies
Unique in the overall sphere of business valuation, the valuing of early stage and venture-backed companies lacks the traditional metrics of cash flow, earnings, or even revenue at times. But without these metrics, traditional discounted cash flow models and comparison to public markets or private transactions take on less relevance, calling for a more "experiential" valuation approach.In a straightforward, no-nonsense manner, the mystique surrounding the valuation of early stage and venture-backed companies is now unveiled. With an emphasis on applications and models,Valuing Early Stage and Venture-Backed Companiesshows the most effective way for your company to prepare and present its valuations.Featuring contributed chapters by a panel of top valuation experts, this book dispels improper valuation techniques promulgated by unknowing business appraisers and answers your key questions about valuation theory and which tools you need to successfully apply in your specific situation.Here, you'll find out more about various valuation techniques, including:"Back solving" valuationModified cost approachOption pricing modelProbability-weighted expected returns modelAsian putsNew data on discounts for lack of marketabilityDetailed and hands-on,Valuing Early Stage and Venture-Backed Companiesequips you with broad foundational data on the venture capital industry, as well as in-depth analyses of distinct early stage company valuation approaches.Performing valuations for your early stage company requires an understanding of the special circumstances faced by your organization. With ample examples of generally accepted allocation models with complex capital structures common to early stage companies, ValuingEarly Stage and Venture-Backed Companiesmixes real-life experience with deep technical expertise to equip you with the complete, user-friendly resource you'll turn to often in valuing your early stage or venture-backed company.