What is PwC’s Innovation Ecosystem?
Describe what the PwC NextLevel platform offers to the three stakeholders startups, venture capitals and corporates!
How are Valuations dependent on certain phases?
Several appropriate valuation methods need to be applied in the VC Context!
What four stages can be distinguished regarding the growth of startups?
Seed stage:
Concepts/Ideas
Founding team and business
first small financing
no cash flows
Early stages:
MVP
Marketing/sales channels
High financing requirements
Small an generally negative cash flows
Growth stage:
Production/Services/Distribution channels
New products/markets
Stable and initial positive cash flows
Employee growth
Exist stage:
Growth slowdown
Profitability
Product/service development
Cash flows to investors
Plan EXIT
What Data is required to evaluate the pre-money and post-money value?
Investment amount (in that round)
price per share
number of shares (issued)
Pre-money Value= #total shares previous round * Share price new round
Post-money Valuation (value series B shares)= Pre-Money + Capital raised
Valuation based on past financing rounds brings challenges! What should be considered to assesss whether a financing round is sound (solide) or not?
Timing:
Background:
Conditions:
Describe the Scorecard Method!
Evaluation of a startup based on qualitative assessment criteria.
Categories:
How is the risk of young growth companies reflected in the
valuation using the DCF method?
You can adjust the DCF by either…
reducing the cash flows
increasing the discount rate
Option 1 (reduce cash flows): Application of empirical survivail rates to cash flows
Development in the first seven years:
Option 2 (increase discount rate): Increase the discount rate using the scorecard method
Give an overview of the pro’s and con’s of the different valuation methods!
Last changed9 months ago
