| Angel Eyes: Valuing the Start-Up Company from the Perspective of the Investors (1443Q)
Course CPE: 2 hour(s)
Field(s) of Study: Economics–1 hr; Finance–1 hr
Program Level: Basic
Prerequisites: Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area.
Advanced Preparation: None
Delivery Method: QAS Self-Study
Shipping Weight: 0lbs. 0oz.
|Recording Date: June 19, 2020
Presenter: Jamison Rounds
How does one value a pre-revenue start-up? Angels do it all the time. The challenge is that just because Angels have invested in a company, doesn't mean it really is worth anything. The entrepreneur who gets divorced or dies just after an Angel funding round might have value on paper, but might not be worth much (or any) more than before funding. Angels invest on a mix of specific company risk and odds of success. They know the value of the start-up is a constantly moving target, but they are comfortable with that. Using the investors’ perspective and matching the company with its projections and milestones can provide a basis for valuing that company as it falls to failure or rises to success.
After completing this course, attendees will be able to:
- List how to better value companies that are pre-revenue, are seeking angel investments, or have relatively recently received angel investments
- Identify how to determine value based on angel investor valuations and adjust accordingly for likelihood of future financial success
- Differentiate between companies valued based on the traditional asset, income, and market approach, and look at early stage companies from the "opportunity" approach, which is a hybrid of the market and income approaches, pegged to the company's securing of investors and progress relative to projections
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