 Ventiökapitollinen metode on käyttänyt vuodellisesti ventiökapitollista. Toisaalta, kun tämä metode on käyttänyt ja miten, pitäisi yhdistää, mitä ventiökapitollista on. Täällä on kaksi erilaisuudessa investoja, jotka voivat käyttää tämä teknikin. Olemme Ventiökapitollista ja Ventiö-investoja. Tällä kertaa investoja maailmattomia, joilla haluaa tekemään tekemään tekemään. Voi on, että investoja tekevät pieniä, mutta se on maailmattomia, koska yhä tekevät pieniä, kontaktia ja tietoa ja muita asioita, jota voivat ottaa ja takaisin. Ventiökapitollista voivat myös osata enemmän fundioita ja tekemään tekemään. Ventiökapitollista ja ventiökapitollista voivat osata, että ventiökapitollista on välttämättä, jota on tietysti, että ne ovat tehneet vitiä ja vesiä, ja sitten he voivat ajata, että he voivat ajata, että he voivat ajata, että he voivat ajata, Or they simply want to invest their money to get profit for their existing wealth. Venture capitalists, on the other hand, are professional investors. They typically don't invest their own money, but instead they collect a fund from other wealthy individuals' organisations, and then they invest from that fund. The venture capitalists typically has a planned expiration date when the fund returns the money to the owners. Jos haluaa tämän aktiivien 7 vuoksi, niin se tarkoittaa, että jos on investerit, investerit investerit investerit keskustelua 1 vuoksi, niin se pitäisi yksi vuosien 7 vuoksi, jotta he voivat tietysti ottaa monia. Engelä-investerit ympäristöä investerit smaller amounts than venturer-kapitalist. Venturer-kapitalist voivat investerit substanssia amounts through syndication, when different venturer-kapitalists join forces, and for example invest in a second or third round when the size of the investment can be tens or hundreds of millions of euros or dollars. Let's take a look at how these kinds of investors value entrepreneur companies. The important things in valuations are the due diligence. So when an investor, a venturer-kapitalist or an angel investor decides to do an investment, they will do this process of due diligence where the companies are analyzed in detail and the valuation is developed. It involves also considering all kinds of possible risks. So you look at founders, you look at legal aspects, markets, finances, what kind of people there are, and importantly, you look at the exit strategy. So a venturer-kapitalist eventually needs to sell their shares and they need to do that with high profits at least for some of their investments. The reason for that is that the companies or individuals we invested in the venturer-kapitalist capital fund want to get their money back with interest at some point. So the exit strategy is something that we need to consider in venture-kapital financing. The idea of an exit is also important in the venture-kapital valuation method. The venture-kapital valuation could look like that. So most people know venture-kapitalist from the show Sharks Tank or Lions Den or Dragons Den depending on which country you happen to live in and in this show these angel investors propose investments to entrepreneurs who pitch their ideas and they talk about valuation, pre-money valuation, post-money valuation and that kind of things. Where do these numbers come from? What is pre-money valuation and what are these post-money valuations? When we look at the valuation of a company this is for Johan Iratikainen slide the idea of a company value that it's enterprise value which is the value of the assets, value of the business and so on and then it's cash and equivalence. When we have a large company buying a smaller company they typically look at value adding this enterprise value here and then they just take the cash to themselves. With venture-kapital funding it's a bit different because venture capitalists typically inject money into the investment. They don't take money from the investment target like larger companies would do but they give money to the investment target to help that to grow. When we look at venture capital funding and venture capital valuation we need to look at this thing. A share gives you ownership of this full thing the enterprise value and also the cash. If you have one share and then one out of one hundred then there is money in the bank one hundred of that money is yours. So share gives you ownership of the money. And this is the pre-money values. When a venture capitalists invest into the company they typically don't give the money to the owners instead it's issued as new stock and the money that they invest goes into the target company. So when venture capitalists invests there is more money in the company. So we have new investment here and this new investment this new money that the venture capitalists gave is part of the post-money valuation. So the difference between the pre-money valuation and post-money valuation is the amount of money that the venture capitalists invested in the company. We need the pre-money valuation and the post-money valuation both when we calculate valuations for the venture capital finance. How a venture capital method works is that you basically start by estimating the exit value the XE here. So how much money what would be the valuation of the company if everything goes well and the company is able to sell itself to a larger company in the same industry or able to do an IPO. So we need to determine the exit value. Then we discount the exit value to the current time. So the venture capitalists method does not really take into account what happens between the investment and the exit because that's considered to be unimportant the company will not do issue dividends anyway because they want to invest all the money that they get into growing to get the exit value as high as possible. So the company does not really produce any value to their investor directly before the exit. So the exit is the time where the venture capitalist realizes the profit. Then pre-money valuation is simply the post-money valuation calculated from the exit value by discounting minus the investment and if you want to know how much share you will get then you can divide the investment by the post-money valuation. So that's where the 10% comes from pre-money valuation and post-money valuation and the amount of investment. The exit value is typically calculated based on IPO value. So if the company will be stock listed the venture capitalist will do an estimate of how much the value of that company would be on the stock markets. How much the trade save value would be. So if we sell a small software company to Google or Microsoft how much would Google or Microsoft pay for it. And then we can also apply terminal value discounted cash flow method and this would be the scenario where it's not clear who would buy the company but perhaps the current owners will buy out the venture capitalist. But these three techniques are being applied to calculate the terminal or the exit value in the venture capitalist values. Venture capitalist require a large profit. So the rate of return must be substantially higher than 10 or 15% that a normal investor would get. The reason for that is that venture capitalist investments are high risk. So venture capitalist thinks that if everything goes well maybe one out of ten of their portfolio companies is a big success. And they aim for getting their money back tenfold for example five years. So if you have the equation for tenfold increase and you calculate how much the value of the company would need to increase every year to produce a tenfold increase in five years you can calculate the raw here and it's gonna be 0.58. So you need to have almost 60% return rate for every year and you can't use that return rate. The reason for this high rates are that most venture capital funded companies fail and those failed companies are considered worthless for the venture capitalist. Only those companies that actually successfully exit make the money for the venture capitalist and other ex in the basket are just not valuable at all because the venture capitalist can't sell them for a good profit. Summary of the venture capital method. So the idea of venture capital method is that you estimate the exit value there are different techniques for doing so you discount the current value discount to current value to get post money valuation you subtract the investment to get pre money valuation and this technique makes a couple of assumptions. First no dividends before exit and that's because all the money that this comes in needs to be invested to growth and failed company's value is at zero. Sometimes this technique is used with different scenarios. So you might calculate a scenario quick win where there is an early exit with 20 million euros a bit later exit with 80 million euros and an exit that is longer than the venture capitalist would like to have for 40 million euros or dollars. Then we calculate the probability of these different scenarios and we weight the different probabilities we take the weighted sum where we have our expected value this is the post money valuation. If there is a flop the company can't be sold its value is going to be zero and these model estimates that complete failure to be a 50% probability. So this is the venture capitalist method in a nutshell you estimate the exit value you discounted the current value and that gives the post money valuation you subtract the investment that gives the pre money value.