Category Archives: Capital

Updated :: Valuation

Updated the post with some new info.

His latest book :: Narrative and Numbers: The Value of Stories in Business (Columbia Business School Publishing)

Also this is his main web page with all the courses :: http://pages.stern.nyu.edu/~adamodar/

Private company valuation is a tough craft – part art, science, gut feel and negotiations.

Came across this the other day:

I love the Prof so figured this was going to be good. And it is.

That lead me to a few more docs.

http://pages.stern.nyu.edu/~adamodar/pdfiles/ovhds/inv2E/PvtFirm.pdf

http://people.stern.nyu.edu/adamodar/pdfiles/ovhds/dam2ed/ValIntro.pdf

But this one looks like a gold mine:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/webcastvalonline.htm

ABL

Context

This was posted today :: https://www.dealstreetasia.com/stories/future-early-stage-funding-asean-exciting-seedplus-77307/

Which is great – I appreciate good press.

However I want to clarify the first paragraph:

Michael Smith of early-stage venture fund SeedPlus, an affiliate of Jungle Ventures, is uncertain about the trajectory of early-stage funding in Singapore and the wider region but believes that deep technology as a segment will emerge a winner in the long run.

This was the question that this answer was lifted from:

From your current perspective in the ecosystem, what’s the general trajectory for early-stage funding (i.e. pre-seed to Series A) and its evolution since 2015? What is the future?

My answer:

The future is something we can’t predict but we feel that deep tech will emerge as a winner in the Singapore ecosystem and that across the region there will be startups raising substantial money at the pre-A level for regional or APAC wide business ideas that need institutional money on their way to their Series A. The future looks pretty exciting in our opinion.

I don’t think what I said was I am uncertain. What I said is I can’t predict the future. I don’t have a crystal ball, startup opportunity, and I don’t think it ever makes sense to try and predict the future.

I am just honest in saying no one knows what will happen but I am confident the ecosystem has a very promising future.

Singapore as a hub

Interesting post from Matt W at EF :: https://medium.com/@mattwichrowski/field-notes-on-singapores-venture-scene-3dba1dd66798

Lots to parse in this but I generally agree in that the city is primed for potential and the big stuff is yet to come but we are on the cusp of it.

SeedPlus got a mention so I will just call that out but there is much more in the article than that. I personally like the section on Singapore as a hub:

3. There’s power in being a hub

I made the mistake of starting early conversations with: “What’s the Singapore venture scene like?” A simple question, but it immediately showed my ignorance. You can’t properly assess Singapore without taking all of Southeast Asia into account, because the two are cosmically intertwined. Investment strategy isn’t limited to the 277.6 mi² area of the island. It’s regional from day one. Singapore has achieved a remarkable amount in just 50 years, and it has done a lot of that by partnering with the rest of the world. International legal standards and advantageous tax treatment have made Singapore the de facto Southeast Asian hub for many businesses. So while there’s a lot of money in the small island nation, that cash is flowing to Vietnam, India, Malaysia and a host of fast-growing countries. The inverse is true for talent. Many of the region’s best minds flock to Singapore to build their startup HQ, and then attack their local market for dominance. This is, in no small part, one of the driving reasons EF set up shop there.

My relocation to Singapore after years of being around other parts of Asia was solely based on this premise – Singapore makes for a great hub and I think this is huge for startups and for VC’s. Of course no place is perfect and there are people that disagree but that doesn’t change the appeal of Singapore for me and most of the folks I work with.

An exit is usually an acquisition

I don’t have the slides for this and wish I did but the video is worth a watch.

Startups don’t always talk about it but most exits are via mergers or acquisitions. Yes – founders can dream about going all the way but that doesn’t noramlly happen. If the startup even makes its, cause going bust is the normal route, the path to exit won’t always be an IPO or making piles of cash.

Founders shouldn’t avoid an acquisition as an exit route, in fact it might very well be the most lucrative outcome.

All that aside though, if founders think companies are bought then they are in for another surprise. Companies are sold which means you need to know how to sell your company by understanding which companies might buy you and figuring out how to navigate corp dev.

Startups should start thinking about how all this works earlier than they normally do.

Enjoy!