Entrepreneurial Finance and Venture Capital

  1. Valuation of New Ventures
    1. Core Valuation Concepts
      1. Pre-Money Valuation
        1. Post-Money Valuation
          1. Equity Dilution
            1. Dilution Impact on Founders and Investors
            2. Capitalization Tables
              1. Cap Table Construction
                1. Tracking Ownership Changes
              2. Valuation Methods for Early-Stage Companies
                1. The Venture Capital Method
                  1. Estimating Terminal Value
                    1. Determining the Required Rate of Return
                      1. Calculating Post-Money and Pre-Money Valuation
                      2. The Berkus Method
                        1. Qualitative Assessment Factors
                        2. Scorecard Valuation Method
                          1. Benchmarking Against Comparable Startups
                            1. Risk Factor Summation
                            2. Comparable Company Analysis
                              1. Identifying Comparable Companies
                                1. Valuation Multiples
                                2. Precedent Transaction Analysis
                                  1. Analyzing Past Transactions
                                    1. Adjusting for Market Conditions
                                    2. Risk Factor Summation Method
                                      1. Base Valuation Determination
                                        1. Risk Factor Assessment
                                          1. Adjustment Calculations
                                        2. Discounted Cash Flow Analysis for Startups
                                          1. Challenges in Applying DCF to Ventures
                                            1. Forecasting Uncertainty
                                              1. Terminal Value Estimation
                                              2. Projecting Free Cash Flows
                                                1. Revenue and Expense Projections
                                                  1. Capital Expenditure Assumptions
                                                  2. Determining an Appropriate Discount Rate
                                                    1. Risk-Adjusted Discount Rates
                                                      1. Cost of Capital for Startups
                                                    2. Valuation in Different Funding Rounds
                                                      1. Seed Stage Valuation Nuances
                                                        1. Limited Financial Data
                                                          1. Heavy Reliance on Qualitative Factors
                                                          2. Valuing Growth-Stage Companies
                                                            1. Use of Financial Metrics
                                                              1. Market Comparables
                                                              2. Up-Rounds and Down-Rounds
                                                                1. Implications for Ownership and Morale
                                                                  1. Anti-Dilution Protection

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                                                              2. Financial Planning and Analysis for Startups

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                                                              4. Sources of Early-Stage Capital