The Exit Disconnect

Posted by on Mar 26, 2010 in Company Creation/Operation, General | No Comments

I’ll admit to having a bias towards exits and focus my review of a potential investment on the exit potential.  I do sometimes get impatient when the investment proposal has little or no information on the exit path. Even where an exit strategy is proposed, the descriptions demonstrate either limited information about what it will […]

When Growth Decreases Value

Posted by on Mar 18, 2010 in General | No Comments

I have frequently been heard to say to an entrepreneurial team ‘Don’t grow!’ This is normally received with a chorus of exclamations and some strong objections. It is only as I set out how their value is created through strategic value rather than growth that they see the logic of putting their efforts into creating […]

Valuation for Seed Stage Investments

Posted by on Mar 10, 2010 in Fundraising | No Comments

Question: My partner and I are trying to agree on an initial valuation to establish an equity share percentage for a seed stage company that is not yet operating. I realize there are many factors you take into account, but I am wondering about my partner’s suggestion that we use a multiple of year 4 […]