Start up Valuation Program

The objective of this program is to provide knowledge and detailed understanding of startups modeling, fundraising and valuation followed in the equity industry. This course will help participants to improve their knowledge and develop their professional skills required in the startup company and venture industry or dealing with equity professionals. All individuals who want to improve their knowledge and further develop their professional skills in the private equity space

• Startup companies who are planning to raise capital
• Professionals who are seeking a career in venture capital
• Family offices and strategic departments of business which are planning to invest in the startup’s companies
• CEOs, head of business units, departments and decision-making personnel – who want to deal or currently dealing with venture equity firms
• Middle to senior managers including analysts/ investment bankers/ finance professionals
• Candidates who wish to set up venture equity business

Methodology & Trainer

The non-theoretical methodology which includes interactive discussions, case studies, interactive games and assignments to understand the concepts and their applicability in current economic and financial environment. All our trainers are carefully chosen by us and possess a rich and vast experience in the financial sector. Course is conducted by an experienced training consultant having more than 17 years of industry experience with some of the worldu2019s leading business institutions, specializing in corporate finance, investment banking, and private equity.

Module – 1: Valuation: How to value the startups

• Introduction to business valuations
• Various types of traditional valuation methodologies
• Why conventional valuation methods may not apply to start-ups
• Key pitfalls

Module – 2: Approaches to applying different valuation techniques to the Startups – Traditional Approach

• Various methods of valuation – DCF, Multiples, comparable, etc
• Discounted Cash Flow valuation and different multiples-based methodologies
• Importance of discount rate and multiple adjustments
• Analyzing the number and modification of the projection

Module – 3: Approaches to applying various specialized valuation techniques to the Startups – New Approach

• Issues with traditional methods in applying in start-ups companies
• Some new ways to value startups
• The venture capital method
• The scorecard method
• The risk factor adjusted method
• The simplified net present value method
• Calculation and impact of critical ratios like churn rate, burn rate, revenues run rate, Conversion rate, Customer acquisition, cost Customer life time value
• Various other ways to evaluate the startups

Module – 4: Calculation of investor returns and sensitivity analysis

• Understanding returns for the investors
• How to do return analysis at the time of investments and exits
• Use of data for sensitivity analysis
• Identifying suitable scenarios and sensitivities and their impact on returns

Module – 5: How to raise funds from investors

• How to calculate the funding requirement
• Fundraising process
• Identify and target the investors
• Secret of successful fundraising
• How to calculate the total stake to begiven to investors
• Structure of pitch presentation
• How to win investor confidence

Module – 6: Keys terms and how to negotiate the same with investors

• Keys terms and their impact on business – Board seats, Liquidation, preferences, Anti-dilution clauses, vesting of equity, exits, etc
• How to negotiate useful terms sheets
• Key points to focus while negotiating shareholders agreement

Module – 7: Due Diligence-make or break process in the fundraising

• How to create your due diligence plan
• How to prepare for the investor due-diligence
• Manage the due-diligence process
• Key focus areas-financial models, legal, accounting due-diligence
• How to resolve post due diligence observations

Module – 8: Investment structures

• What are the various structures for investments?
• Direct Equity – private market, public market, listed and unlisted market
• Equity-linked debt – mezzanine funding, convertible securities, etc
• Debt funding – bridge funding, subordinated debts, securitization and structured finance

If you want to know more about the program, please refer to our course page at Riverstone Training schedule!