A GUIDE TO VALUING YOUR PERSONAL HOLDINGS IN PRIVATE TECH COMPANIES
Flashpoint
Since 2012, we have been investing in U.S. and Western European tech companies originating from Europe and Israel
#1?A GUIDE TO VALUING YOUR PERSONAL HOLDINGS IN PRIVATE TECH COMPANIES
The problem with tech companies is the lack of clarity on future earnings. As these companies mature, their cap table expands with every financing as founders are joined by employee option holders, friends, family, angels and VCs. Every round provides a useful yardstick of value. How do you determine the value between rounds, especially in the current environment where companies are forced to go breakeven to survive without raising new money for a long time?
#2?AN OVERVIEW OF THE EV CHARGING LANDSCAPE
Just like with regular cars, EVs also need an infrastructure to work though. But unlike combustion engine cars which can be filled in 5 minutes with gas, EVs are a little more complicated. They need chargers too, but the way people use them is a little different. By 2030 most new cars sold will be electric and this means 58 million new chargers will be needed to be installed.
#3?WHAT DOES IT TAKE TO BE A TOP PERFORMING SAAS COMPANY?
When it comes to closing their latest funding round, founders are more than happy to take to the streets of LinkedIn to shout about it. But when it comes to revenue figures, they tend to be quieter. A new report from data platform Dealroom and UK-based investor Flashpoint has gathered revenue data to try and paint a picture of how SaaS startups at various stages of maturity are doing when it comes to revenue generation.
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#4?WHY ARE EXITS A PERENNIAL PROBLEM FOR VCS?
The past two years have been challenging for distributions for both VCs and PEs, especially the former hitting a 14-year low of 5% in distributions as a percentage of net asset value. Average distributions to paid-in capital (DPI) for VC funds launched in 2018 stand at a meager 0.3 times for both EU and U.S. managers, while DPI for funds launched in 2013 is at 1.1 times and 1.8 times, respectively.
#5?CO-INVESTMENT AS A STAND-ALONE PRODUCT IN THE VC SPACE
Last year, global startup investment in 2023 was down by 38% to $285 billion versus the year before, while fundraising by VCs reached a paltry $67 billion across 474 funds compared to $173 billion for 1,340 funds in 2022. There are many ways investors get exposure to startups. The two most obvious paths involve investing in funds managed by professionals or investing directly in companies themselves.?
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