venture capital is that the growth of the market value of start-up companies is worth paying attention to. But the impact of corporate earnings growth on shareholder value is often distorted. Tom · explains that sometimes a company’s valuation can be reduced, but it is still growing at a healthy rate. He pointed out precisely, just because business growth does not mean that the overall value of its increase. It does not mean that shareholders will have more income in the process.
in the above three cases, the author’s suggestion is actually very simple, from the founder’s perspective, the most important thing is in essence when a project return to commercial, pure entrepreneurial motivation, firmly grasp the three points:
follow the trend of speculation become a victim, a large number of corporate bankruptcies, a large number of employees leaving employment again, let people sadly sigh at the same time, also have to calm down, look at the good people in this industry, we should decide on what path to follow.
below is an example of how this operation is analyzed:
2, the founder regardless of 37, twenty-one, first burn money for users, the stall bigger, no matter how to say, the investor’s money to get hands first.
then entrepreneurs and investors is how to assess the impact of income growth on the company’s stock value, and decide whether to increase investment, increase capital or sell the company? For this, you need to make some necessary calculations. To make the computing process simpler, Venero Capital Advisors prepared an automated digital processing spreadsheet Excel. You can download and use it here.
in Excel, all we have to do is to enter our hypothesis:
3, many executives, and even CEO’s work, KPI oriented, data-driven work, in order to get financing, and even at the data fraud.
Abstract: a large number of companies bankrupt, a large number of employees leaving employment again, let people sadly sigh at the same time, also have to calm down, look at the good, we are the Internet industry practitioners should decide on what path to follow.
1, the founder of the enterprise made To VC model, do not do a good job of products and services, thinking how to take money from the investors, I do not need to say more, we are all clear the door.
so, in this case, which option adds more space? Let’s take a look at the numbers below.
important note: the valuation of corporate fundraising is different from the valuation of the acquirer’s willingness to pay for the business. That’s why, in our made Excel, you can specify an exit multiple, not the company’s capital valuation. In addition, the example assumes that the liquidation priority is not included, and its impact will be shown separately in the Excel model.
The first principle of
‘s founders and executives, including the core managers of CEO owners who account for shares in start-up companies, have seen too many failures as a practitioner of the Internet industry for many years. Among the three most common types of bad attitudes in the founders and executives, I have summarized them as follows:
suppose you have a 30% stake in a company with an average annual income of $5 million. You are now evaluating two options:
entrepreneurs long face an important choice: for the next round of financing, or to exit through the listing or purchase? This choice can not give intuition to do, must be made by precise calculation and careful consideration. Venero Capital Advisors recently launched an automated digital processing spreadsheet Excel that can help entrepreneurs perform this calculation.
founder and executive
choice 1: continue to run the company for 3 years with the goal of increasing revenues from $10 million to $5 million and then exiting at a 5 fold $50 million deal. To achieve this, you need $10 million in funds. You will get a pre valuation of $20 million, but that means your equity will be diluted to 20%.
article such as the title, is to want to talk about personal Internet practitioners how to spend is called "some insights into this stage capital cold winter", the reason for the winter capital playing quotes because there is some doubt to this definition, but because people say more, have high degree of popularity, take out the quote, convenient you understand what I want to say is what you can.
personally, this argument is not recognized before the winter capital, because the investment industry environment seem to me to be part of the participants in the investment industry have a fever, infuses the entire capital market, is now a high fever, people wake up, to facilitate to think calmly.
select 2: quit today, earning about five times the current value valued at $25 million.
‘s definition of employees is not based on traditional jobs, because whether you’re a product, a technology, or an operation, changes will take place in a changing environment. This change, and the way you adapt to change, often with your position and identity are closely related, so from the following two categories of identity as the starting point to explore, we should take what kind of attitude to face the new normal conservative capital markets tend to be calm.