Quite interested in learning about late stage VC / growth equity. What sort of modelling do you do in this, would they basically just build out an LBO style financial model but essentially as a minority investment? I.e. say a PE fund was investing in series B or C fundraise, how would the valuation/modelling/returns analysis be done? Thanks.

It wouldn't be LBO style because you aren't using leverage and you don't care as much about cashflows, etc. We value based on multiples of ARR and expect acquirers would do the same. To that end, the meat of our models are centered around core influencers of revenue growth -- key drivers like number of salespeople per segment, time to ramp new salespeople, quota, quota attainment, etc. You can go one level deeper to top of the funnel and estimate number of leads per month, percent of leads that will convert, etc.

What models do growth equity / late stage VC funds use?

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What models do growth equity / late stage VC funds use?

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