Valuation: The “Venture Capital” (VC) method
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- Опубликовано: 26 июл 2024
- An introduction to valuation using the “Venture Capital” method. Originally recorded by Prof. Luke Stein for a Babson College MBA core finance course.
Introducing the “VC method” which combines discounted-cash flow (DCF) with a terminal value from a relative valuation (multiples) or precedent transactions. A simple example of calculating terminal value, pre-money value, post-money value, price per share, and dilution.
See also www.vcmethod.com
0:00 - Introduction
2:49 - Conceptual overview
6:04 - Example setup
8:52 - Worked example (pencil and paper)
12:20 - Worked example (spreadsheet)
14:07 - Valuation wrap-up
Simple and good Very useful Thank you
This was very helpful. Thank you
I’m glad!!
Is "venture capital valuation" the same as "capital valuation" ????
why not divide ROI ,,, why divide the 1/(1+WACC)^n origin VC method includes post value= TV/ ROI
I like the day behind this VC valuation method but let's be honest right now. There so many things made up in this valuation that there's no way that this can be accurate. Like... "I'm gonna require a 50% annual growth rate" like what? You can't just ask for this and then it happens lol. Same for the 2,5m in revenues in 5 years. Let's be honest that's just speculation at that point. And the problem is, the whole calculation is based on those assumptions. Honestly, I don't think it makes sense to use any kind of calculation at that point. I think the best would be to just look at the founders, the team, the idea, the market and focus on negotiating well. At least when it comes to VC investments
if mr mackey was a venture capitalist... :-)
This is useful information, but it's difficult to follow because it's presented in a very fast and wordy way. No pause or break at all, just constant word vomit. Would appreciate it being slower and more visual.
This is one of the better explanations. Super clear and informative
way too much talking. need graphics not text