VC fund structure and characteristics example
Give a brief overview of the Venture Capital method!
Valuation Steps:
The five steps are done by a VC, who assumes to participate in only one financing round.
The VC Method is also called Fundamental Pricing Method.
Decribe the Steps of the Venture Capital Method in more detail!
Factors influencing the target rate of return
Venture Capital Method: New Venture Specifics
Give a brief Overview of the Rules of Thumb!
Rules of Ratios
Three Thirds Method
Component Valuation
Berkeus Method
Morbitzer Method
Meier Method
Kawasaki Method
Riskfactor Method
Scoreboard Valuaton Method
Price Ranges
-> these are often used by business angels when investing in pre-seed or seed rounds
A seed valuation is based on assumptions anyways. Hence, educated guesses based on common factors and rules of thumb give reasonable results, compared to more profound valuation methods.
Give an example for a Rules of Rations Method!
Give examples for a Component Valuation Method!
Berkus Method:
Morbitzer Method:
Meier Method:
+ 1000$ per manager with industry experience/know-how
Kawasaki’s Law:
+ 500k $ per Full-time employee with engineering degree
- 250k $ per full-time employee with MBA degree
Riskfactor Method:
Scoreboard Valuation Method:
Last changeda year ago
