Venture Capital Valuation, + Website

<p>Imagine selling $2 million “worth” of Google stock and only receiving $50 in return? This scenario happens every day for venture-backed companies. Failure to quickly understand high-growth company valuation can cost trillions of dollars. Yet very few leaders involved in a venture-backed company have a definitive understanding of how valuation techniques are being applied to their financial statements and the decision-making process. Featuring extensive case studies of high-profile corporations, including Facebook, Twitter, and Microsoft, <i>Venture Capital Valuation</i> provides the knowledge and techniques necessary to understand and value high-growth companies. <p>Sharing his twenty-year track record helping thousands of investors, practitioners, and entrepreneurs measure and realize high-growth venture, author Lorenzo Carver draws on real-world cases from investors, founders, and advisors to illustrate how each corporation was impacted by valuations. By putting these techniques into a context and framework, <i>Venture Capital Valuation</i> simplifies them so that anyone founding, running, and investing in these innovative companies can apply them immediately. <p>Featuring a companion website where readers can access and download additional case study material, as well as different valuation materials mentioned throughout the text, <i>Venture Capital Valuation</i> explores: <ul> <li> Why what you don’t know about valuation will cost you money</li> <li> How VCs, angels, founders, and employees give up investment cash flow every day</li> <li>Facebook at $80 billion valuation versus Enron at $80 billion valuation</li> <li>Deal terms, waterfalls, and the pre-money myth</li> <li> Whether venture-backed companies should even consider a discounted cash flow (DCF) model</li> <li> Separating enterprise value from the allocation of that value</li> <li>Valuing total equity Using Future Value (FV) and Present Value (PV) to value future cash flows today</li> <li>Why applying the typical DCF model to a venture-backed company hardly ever works</li> <li> “Enterprise Value” + “Allocation Methods” = Value Destruction</li> <li>Undervaluing companies and overvaluing employee options</li> <li>Why you should D.O.W.T. (doubt) venture capital returns</li> <li> 409A valuation professionals discussing topic 820 (FAS 157) with VC CFOs</li> </ul> <p>An invaluable resource for anyone who wants to make the most out of their investments, <i>Venture Capital Valuation</i> shows business appraisers and venture capitalists how to maximize their returns and avoid losing money—before the damage becomes irreparable.