Venture Capital Valuation Analysis Method

Evaluating or determining the value of assets is a key business issue. This is especially important in considering an investment in a start-up or early stage company by a Venture Capitalist (VC), Angel, or Private Equity investor, as well as for entrepreneurs seeking capital - outside funding. Venture capital is typically exchanged for ownership in the enterprise, and the key to the structure of the deal is the valuation of the entrepreneur’s business.

This course will provide an in-depth presentation of the Venture Capital Method used by investors and entrepreneurs to establish the terms for fundings. The course will cover topics such as:

• Cash flow projection methods for early stage companies

• The discount rate or required rate of return

• Use these key parameters to apply the valuation method in a step-wise fashion

• The concepts of pre-money and post-money value

• Examine Refinements to the deal structure, stage financings and alternate types of securities

An example will show the calculations in detail. Practical negotiating points, a real-world perspective, are also included.

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