bleh

mba/ch30.org

@@ -8,3 +8,61 @@
 - [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4311466#overview][S05:L30 Venture Capital Part 3]]
 
 * Notes
+
+** topics within the Venture Capital are relevant
+1. starting a company
+2. new division
+3. raising money
+4. potential investors
+5. creating disruptive ideas
+
+** we are in the third round
+- years 3-4
+
+- after this
+  - go public
+  - break up the company
+  - file for chapter 11
+  - sell the company
+
+- find your passion
+  - you better be doing this because you want to
+
+- VCs want to work with the best management team
+
+** example
+- the best management team is the most important
+- P.O.C "proof of concept"
+- P.O.S. "point of sale"
+
+*** starting point
+10,000$ equity
+2,000,000 shares
+
+** first round vc
+
+*** company estimated:
+time: 5 years
+net income: $1mn
+
+*** competitor
+valuation: $20mn
+net income: $2mn
+
+Price / Earning = $20mn / $2mn = 10 times PE multiple.
+
+*** conclusion
+the competitor is worth $20mn now with a $2mn net income, leading us to believe the PE ratio is 10
+
+therefore if the net income is expected to be $1mn in 5 years, then the value of the company should be $10mn
+
+PE * net_income = Value
+
+10 * $1mn = $10mn
+
+** what is the company worth today
+VC expects to make 50% per year
+
+
+
+therefore