Valuation for Startups
About the Course
As founders, one question that usually creates disagreement and heartburn is the Valuation Question. It is difficult to find consensus to close the deal. The reason? Valuation is too close to our combined hearts. What is required is a look through a neutral lens - a balanced view considering the founders & investors perspective:
- How much is your startup really worth?
- How do you take conventional models and customize them for the startup world?
- What are the biggest drivers of value in the startup world?
- What decisions impact valuations more than others?
- What are the boundary conditions under which models break down?
- How do investors answer the valuation question in their minds?
We start by looking at models, mechanics, boundary conditions and intuition. We then take a deeper dive focusing on insights, takeaways and decisions and choices that impact future value.
We use four real business case studies to work with multiple approaches to value and compare investment opportunities and get comfortable with valuation frameworks.
We look at the Fintech space, a payment startup and a digital insurance venture to gain further insights into the investor attractiveness and value.
|Financial Modelling Day Planner|
|Day 1 – Mechanics and Models|
We look at four real businesses across four different sectors and compare attractiveness for investment using Lifetime Value (LTV), Customer Acquisition Costs (CAC), short term growth, long term growth and margins. We compare current and projected valuation results using DCF, multiples and boundary conditions getting comfortable with valuation frameworks for applications on Day Two.
|Day 2 – Applications and Insights|
Rather than cutting across segments we dig into the Fintech space and compare a payment startup with a digital insurance startup on appeal to investor group and value.
Same framework but an in-depth and deeper dive.
After taking this course you will be able to:
- How valuations frameworks are used by founders and investors to evaluate a business
- Decisions, factors, and drivers that impact the range of valuations for a business
- Why are certain businesses more valuable than others? Why are certain markets more attractive than others?
- Tools and metrics they can use to compare businesses and their appeal to investors
This is a hands on course and requires some background and exposure to EXCEL. All participants would need a laptop with EXCEL professional installed on it. The course cannot be taken on a phone. Participants need to build and submit models for review.
The course has a pre-requisite and requires familiarity with financial modelling. Complimentary access to our four half day asynchronous self paced financial modeling course is included for all paid participants.
The intended audience are founders, startups, product managers, financial analysts, and consultants responsible for building growth, valuation and debt servicing models for clients.