66 lines
1.7 KiB
Org Mode
66 lines
1.7 KiB
Org Mode
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#+title: Section 5 | Lesson 30 - Venture Capital Part 3
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* Links
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- [[./../mba-main.org][<Back to Main MBA]]
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- [[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]]
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* Notes
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** topics within the Venture Capital are relevant
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1. starting a company
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2. new division
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3. raising money
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4. potential investors
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5. creating disruptive ideas
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** we are in the third round
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- years 3-4
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- after this
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- go public
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- break up the company
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- file for chapter 11
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- sell the company
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- find your passion
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- you better be doing this because you want to
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- VCs want to work with the best management team
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** example
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- the best management team is the most important
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- P.O.C "proof of concept"
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- P.O.S. "point of sale"
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*** starting point
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10,000$ equity
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2,000,000 shares
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** first round vc
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*** company estimated:
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time: 5 years
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net income: $1mn
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*** competitor
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valuation: $20mn
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net income: $2mn
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Price / Earning = $20mn / $2mn = 10 times PE multiple.
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*** conclusion
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the competitor is worth $20mn now with a $2mn net income, leading us to believe the PE ratio is 10
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therefore if the net income is expected to be $1mn in 5 years, then the value of the company should be $10mn
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PE * net_income = Value
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10 * $1mn = $10mn
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** what is the company worth today
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- VC expects to make 50% per year
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- (Value of Company in 5 Years) / (1 + Percentage Earnings Per Year) ^ (Number of Years)
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- $10 mn / (1 + 50%) ^ 5
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