This module is a part of NACO Academy Module Series.
This highly reviewed webinar is geared to both entrepreneurs and investors. It will take place in one 3-hour session.
This module will show you how to valuate early stage investments. Overview Valuation is the key term in a term sheet that determines how much each party owns once an investment is made. It also sets the stage for the value of future financings and an eventual exit, as well as related issues such a pricing stock options, debt conversion among other.
This module will cover:
- Common valuation practices in Canada and the US;
- Pre-revenue valuations;
- The art vs. science discussion;
- Negative outcomes if the agreed valuation is too high or too low;
- Role of the founders/entrepreneurs in setting the right valuation;
- Role of the angel investors in setting the right valuation;
- Risk mitigation strategies (convertible structures, price protection);
- Some notable schools of thought on valuation
- Market trends
Learning objectives - by the end of this module the registration will be able to:
- Understand most valuation approaches and apply these in deal situations;
- Negotiate the value of an investment;
- Ensure that a term sheet deals with valuation in a satisfactory manner to both investor and founder
A mix of case studies, and instructor-led group discussions will predominate the methods used. Registrants may wish to bring a term sheet or relevant case study from a recent deal.