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PA - C5B - ECO652 : Valuation of Start-ups

Domaine > Economie.

Descriptif

COURSE OUTLINE: 

1)     Venture Capital: the basics

  1. Definition of VC and start-up
  2. What do we really invest in?
  3. The fundamental questions when analysing start-ups at a very early-stage
  4. What about the financials?

 

2)     Enterprise Valuation

  1. Definitions
  2. Roles of Valuation
  3. The Classical Theory: Discounted Cash Flows or Net Present Value
  4. The Modern Methods for developed businesses: the Multiple approach

 

3)     Start-up Valuation

  1. Living in a world where financial methods don’t work
  2. The key principles to never forget
  3. The seed case: when only ideas are on the table
  4. The central case: when sales rocket but profitability is still unseen
  5. Forward thinking: what could we expect as an exit value? Role in the present valuation assessment
  6. The main risk of using the Price to Sales ratio
  7. How to modify a valuation over time: the idea of sharing value depending on exit price

                                                               i.      Preferred Shares

                                                             ii.      Options for the investors

                                                           iii.      Options for the founders & employees

  1. Follow-on rounds and impacts on valuation, proceeds waterfall etc.
  2. Investment Processes in VC

 

4)     Risk Management: the portfolio and the partnership approach

  1. Why should an investor always consider a portfolio rather than a single (or very limited number of) investment?
  2. What should an investor look in a partnership?
  3. Investment strategy and portfolio management
  4. Examples of strategies and impact on the performance
  5. Decision making process and managers compensation

Format des notes

Numérique sur 20

Littérale/grade réduit

Pour les étudiants du diplôme Diplôme d'ingénieur de l'Ecole polytechnique

Le rattrapage est autorisé (Note de rattrapage conservée)
    L'UE est acquise si note finale transposée >= C
    • Crédits ECTS acquis : 5 ECTS

    Pour les étudiants du diplôme Echanges PEI

    Le rattrapage est autorisé (Note de rattrapage conservée)

      Pour les étudiants du diplôme Economics, Data Analytics and Corporate Finance

      Le rattrapage est autorisé (Note de rattrapage conservée)
        L'UE est acquise si note finale transposée >= C
        • Crédits ECTS acquis : 4 ECTS
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