COMM 320 Lecture Notes - Lecture 11: Inflection Point, Inflection, Cash Flow
11 Nov 2018
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How much do you raise: each round of investment will dilute you 20-40, ask for enough capital to get you to the next inflection point (e. g. finding mvp, first sales, scaling up, break even, etc. ) Having enough cash flow to start paying yourself. When your recurring revenue equals your monthly fixed expenses. Entering a new product into a the current territory. Valuation is art not science: value is in the eye of the beholder. Ex: rolex: gentleman"s stainless steel rolex oyster perpetual datejust chronometer bracelet watch, circa 1987. Worn by michael douglas for his role in the movie wall street: depends on, company factors. Is not the key to investment (the other terms matter too!) Basic ways of evaluating a business: earning-capitalization valuation, present value of future cash flows, market-comparable valuation, asset-based valuation. Each of the above methods may get to vastly different monetary values of a company. How to compute valuation : postmv = premv + cash invested.
