Startup Valuation in the 21st Century An Introduction to the seed and early-stage valuation practices: setting best-practice methods and standards for the future.
Olivia Passoni, CVA October 2020
© 2020 Valithea OÜ. All rights reserved.
Table of Contents
How to Use This Book 1.
DISCLAIMER / COPYRIGHT
2.
ABOUT THIS BOOK
3.
SERVICES AVAILABLE
4.
GLOSSARY
Chapter 1 - Introduction to the Startup Valuation Market 1.
DO WE NEED TO VALUE STARTUPS?
2.
WHAT IS A STARTUP?
3.
MUST STARTUP VALUATION METHODS BE DIFFERENT?
4.
HOW MAINSTREAM VALUATION METHODS APPLY TO STARTUPS
5.
A TECHNICAL FINANCIAL APPROACH TO STARTUPS: GOOD OR BAD?
6.
CHAPTER 1 – RECAP
Chapter 2 - Fundraising Implications 1.
FINACING & STRATEGY
2.
PRE-FINANCING MUST DO’S
3.
FUNDRAISING & VALUATION BASICS
4.
FUNDRAISING MILESTONES
5.
FINANCING INSTRUMENTS
6.
SOURCES OF FUNDS
7.
HOW THE FINANCIAL PROJECTIONS HELP SET THE STRATEGY
8.
THE BASIC STARTUP VALUATION
9.
SHARES AND CAP TABLE CALCULATION
10. THE EXIT STRATEGY 11.
VALUE MAXIMISATION
12. INVESTMENT READINESS 13. CHAPTER 2 - RECAP
Startup Valuation in the 21st Century © 2020 Valithea OÜ. All rights reserved.
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Table of Contents 2
Chapter 3 - The Financial Plan 1.
FINANCIAL PLAN STRATEGY
2.
DRAWING THE BUSINESS MAP
3.
DEFINING THE MARKET
4.
MARKET SIZING & EXPANSION
5.
OTHER CUSTOMERS
6.
CUSTOMER ACQUISITION COSTS
7.
REVENUE PROJECTIONS AND DIRECT COSTS
8.
INDIRECT COSTS
9.
THE FINANCIAL PLAN
10. BOTTOM-UP APPROACH 11.
SCENARIOS
12. CHAPTER 3 – QUICK RECAP
Chapter 4 - Principles of Markets & Valuation 1.
WHERE DO UNICORNS COME FROM?
2.
WHAT ROLE DOES HYPE PLAY?
3.
THE LOCATION CONUNDRUM
4.
THE VALUATION-FUNDING LOOP
5.
VALUATION AS A TOOL
6.
CHAPTER 4 – QUICK RECAP
Chapter 5 - Startup Valuation 1.
SEED MARKET METHODS
2.
EXIT VALUE
3.
THE INCOME APPROACH
4.
THE DISCOUNT RATE
5.
THE HYBRID INCOME & MARKET APPROACH
6.
VENTURE CAPITAL METHOD
7.
FIRST CHICAGO METHOD
8.
ALTERNATIVE VC METHODS
9.
PRICE OF RECENT INVESTMENT
10. COST APPROACH 11.
VALITHEA METHOD
12. ADJUSTMENTS 13. COMPARISON OF VALUATION METHODS 14. VALUATION RESULT 15. VALUING A STARTUP WITHOUT A FINANCIAL PLAN 16. CHAPTER 5 - QUICK RECAP
Startup Valuation in the 21st Century © 2020 Valithea OÜ. All rights reserved.
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Table of Contents 3
Chapter 6 - Special Situations 1.
LATE STAGE STARTUPS
2.
EXIT VALUATIONS
3.
EXIT OF FOUNDER
4.
SALE OF INTELLECTUAL PROPERTY
5.
STARTUP SHAREHOLDING VALUATION
6.
ESOP
7.
ICOs
8.
CHAPTER 6 – QUICK RECAP
Chapter 7 - Conclusion 1.
REPORTS & NEGOTIATIONS
2.
COVID-19 AND BEYOND
3.
THOUGHTS ON THE FUTURE
4.
CHAPTER 7 – CONCLUSION
Startup Valuation in the 21st Century © 2020 Valithea OÜ. All rights reserved.
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Introduction
How to use this Book DISCLAIMER / COPYRIGHT
By accessing this e-Book, you indicate that you accept these terms of use and that you agree to abide by them.
With effect from the date of your accessing this book, we hereby grant you a non-exclusive and royalty-free licence to use the content of this Book, but only in accordance with the provisions of these Terms. You may only use the content of this Book to assist in your valuation, investment or financing work, for internal purposes only. Any use of the content of this Book should include the following reference and link: ‘ “Startup Valuation in the 21st Century”, Olivia Passoni, 2020, www.valithea.com’.
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Startup Valuation in the 21st Century © 2020 Valithea OÜ. All rights reserved.
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