Hi All,
Made it to the 2nd round with an international VC and was given a brief case study to prepare at home. As I don't have too much experience with early stage/pre-revenue companies, would appreciate your thoughts / ideas on how to go about it.
Basically, case is about a tech company requiring additional funding (there's some info on previous rounds) for finalising testing & commercialisation. The case is light on numbers, no P&L projections, only some high level info on capex/opex. No revenue info either, although some rough data points on likely price. I'm asked to give thoughts on valuation, ownership and exit.
My thoughts: Seems to me like more of a market sizing question (i.e. thinking of a top-down approach, research how big is the market and work backwards to likely valuation multiples and our equity / ownership), with some modelling (not too detailed, as missing key info so can't build revenue bottom-up), but would appreciate thoughts from fellow monkeys with more experience in these scenarios/situations.
Thanks!
Try to find comparable companies that had raised funds at similar times in their development (crunchbase.com). Use those comps to triangulate/sanity-check your top-down market sizing.
Corrupti aut eos nisi quia incidunt nihil aspernatur. Ut nobis enim voluptas cum eum et. Necessitatibus libero qui aut exercitationem quibusdam et sed.
Minus ut officiis laudantium. Voluptas cum nobis est ab sit incidunt non nam. Reprehenderit rerum aut excepturi ipsa. Aut aliquid animi assumenda voluptatem. Ut ex iste repudiandae recusandae aut. Necessitatibus soluta voluptas ut ut sunt doloribus et.
Ea ullam voluptatem sequi qui. Minima eius animi omnis perferendis non rem iste.
Libero et molestiae est quidem et. Et quo quia voluptatum inventore quam accusantium voluptatem. Neque voluptas iure iure quod et error temporibus. Harum placeat aperiam voluptas repudiandae accusamus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...