Market-Based Valuations

Many factors weigh on the valuation of a company, and for sure there are no two businesses alike. Furthermore, even similar companies find themselves at different stages of their lives when they start talking with investors and buyers: some are consolidating while others are expanding; some are profitable right away and others are not for a long time; some are not even generating revenues when they are acquired.

But a very effective way to monitor the market (albeit quite simplistic) is to benchmark the M&A activity in a specific sector and in a given period. Markets go through different phases after all and there might be more or less appetite for companies like yours, and therefore investors might be inclined to accept higher or lower valuations.

Solo Founders: Myths and Legends

When you’re setting out into the world of business, some widely accepted wisdom states that you need a business partner. After all, starting a company is tough, and you need all the help you can get, right?
However, that’s not really true…
Having a co-founder helps in many ways, but you also have the option of doing it alone.

Investment scams: five red flags to look for

The digital age has made it much easier for cowboys to create convincing profiles online to extort young businesses… but with a good understanding of some common red flags, you can be confident that you are working only with legitimate potential investors.

B2A

Are we on the verge of creating artificial influencers, marketers and salesmen that will target artificial decision makers? Will procurement become an hyperfast and hypercompetitive process, akin to what high-frequency trading is today? It seems the world is already moving in this direction… Will B2A become an important part of the market?

KPIs

It is generally agreed that four to ten measurements may be suitable for the majority of companies, but the number and type of key performance indicators used may change depending on the company and also over time

Disclaimer Template

Whilst it is obviously important for the deck to include a persuasive pitch for investment, it’s also vitally important that you include a disclaimer to protect yourself from any legal action further down the line.

The Abu Dhabi Investment Scam

It recently happened to one of our clients: their company is UK based, with no operations or interests in the UAE – they are fundraising and this investor contacted them out of the blue with a tempting message…

Know your investor

Finding investors can feel like an incredible thing – but make sure you carry out these checks and look before you leap.

SAFE / ASA

Early-stage valuations may feel uncomfortable for both founders and investors… Is there a simple way?

Valuations Made Easy

We are happy to announce that we’ve partnered with Equidam: an online platform for startup valuation that enables entrepreneurs to understand their valuation, transparently discuss it, and close fair deals.

Sophisticated Investors and HNWI

A sophisticated investor is an investor that has sufficient capital and experience to evaluate independently the soundness of an investment opportunity, and bring forward such investment process.

Who Decides Your Company’s Value?

In the past weeks we have established why valuations are helpful, when it makes sense to get your venture evaluated and what are the most common valuation methods for revenue generating companies and early-stage startups.

Karma Works

Everybody has a desire to accrue wealth – we all want more money for our families and for ourselves. But the vast majority of us…

Cap Table

A capitalisation table offers a breakdown of the shareholder equity that a company has. These tables or spreadsheets are known as cap tables and…

Blind Teaser

If you have decided to sell your business or are looking for investments with Venture Capital, you may be wondering whether to advertise your business with an anonymous teaser…

Slicing The Pie

When it comes to your start-up, you want to ensure complete equality of equity. Finances are of the utmost importance, and it’s essential you find a way of fairly and impartially determining the stakes in your business.

101 Startup Stages

The startup life cycle has 6 stages, no wait 5, no, another website said 7 stages and then if you actually read The Lean Startup by Eric Ries then you will have read that there are 3 startup stages.

Let’s face it, it doesn’t really matter how many stages there are, as long as you understand the steps involved you will be able to figure out where you are at and what the next steps on your growth path are.

The Crowdfunding Video

Crowdfunding: you put together a video, ready to let your idea off into the investment stratosphere. But what goes in the video?

Early Stage Valuations

The question is: how can we evaluate the startup if we have not yet reached the stage where recurring revenues are the norm?

The Funding Dictionary

Here you can find a short summary of the specific vocabulary of the funding process. This is a list we share with our founders before diving into negotiations. You can download our Founders’ Prep Meeting Pdf here.

Fundraising 101

Managing to raise capital is rarely easy, and can prove to be an uphill battle, even at the best of times. This is the case even though you have a stellar idea and your business is performing in the marketplace.

Info Memo Checklist

The key to successfully securing investments for a business is a strong information memorandum, also referred to as an info memo

9 Negotiating Principles for Investment Success

What are the underlying principles that you should be using in a negotiation? It doesn’t matter whether you’re the one looking to make the investments or the business looking to attract investors because these principles and techniques will always work – whichever side of the negotiating table you happen to be sat on.

NDA Template

WHEN AN INVESTOR SHOULD SIGN ONE?
If you think you have a special idea and you are scared somebody could steal it from you, think again… Many people have the same ideas at the same time, but the difference is all in the execution!

Not What But How

WHY COMES FIRST BUT DON’T FORGET HOW!
Everything starts with “why”, we can probably all agree on that.

Values First – ESG Later

THE IMPORTANCE OF BEING EARNEST

Environmental, Social, and Governance (ESG) criteria are an almost mandatory aspect of today’s investment markets. But is this a fad?

Lehman Scale

LEHMAN FORMULA
So, let’s address the elephant in the room first: the Lehman Scale takes its name from the infamous Lehman Brothers that developed this method in the late 1960s to bring under control and standardise the market of private bankers’ finders fee.

Funders’ Dilution

It’s important to plan ahead and have your exit strategy clear from the start. What do you want to do with your life and your company? And how much of it should you give to investors in order to see new equity flowing into the business, propelling you towards the next stage of expansion?

The Trinity of Management

WE ARE MAKERS, MARKETERS AND MANAGERS
We believe that in order to deliver amazing results a company must excel at 3 things

DCF Valuation Template

This Discounted Cash Flows technique involves deriving the value of a business by calculating the present value of its expected future cash flows. Projected cash flows, inferred from the Business Plan, are used for the five years ahead while the Terminal Value is adopted for the remaining foreseeable future.