We offer comprehensive valuation services to young ventures engaged in raising capital, forging strategic alliances, and recruiting talent.
A professional, independent startup valuation:
Provides an effective basis for negotiation with venture capitalists, private equity funds, angel groups, and other investors
Serves as a powerful tool when negotiating joint ventures, strategic alliances, and management and director contracts
Represents a credible third-party assessment of the venture's long-term economic potential
Provides a deeper understanding of the drivers of value creation, resulting in further refinement of business strategy
As with all of our valuation offerings, a primary emphasis of Venstrat's startup valuation practice is to provide analysis that is informed, credible, objective, and defensible. Venstrat's ability to produce startup valuation reports that help clients effectively achieve core goals is supported by our team's deep experience in the following areas:
Financial and economic forecasting
Public securities analysis
Market and industry analysis
In combination with our Financial Forecasting and Business Plan Development offerings, our startup valuation services also help new ventures further hone their strategies in order to maximize value creation potential.
Venstrat develops comprehensive financial models for capital raising, M&A, valuation, strategic planning, and other purposes. Each of our models is designed to
Convey economic potential to management, investors, and other stakeholders in a clear, credible manner
Serve as a dynamic, user-friendly management tool for long-term strategic planning
Drawing on our real-world and academic experience in forecasting revenues, expenses, capital expenditures, and working capital needs in a variety of sectors, we employ a bottom-up approach that considers the unique dynamics of the company and industry. The integrated financial statements – income, balance sheet, cash flow, sources & uses – are custom-built to incorporate all drivers specific to a company and its market environment. Inputs are thoroughly supported by economic and industry data and consultations with sector experts, suppliers, and customers.
We place great emphasis on functionality and user-friendliness. The user – a manager, investor, or other stakeholder – can make input changes quickly and easily. Output tables are clearly understandable and presentable. The formulas performing the gory calculations are kept behind the scenes.
A thorough financial forecast supported by realistic assumptions is not only imperative for establishing credibility with investors; it is an essential long-term strategic planning tool. To that end, we focus on facilitating scenario analysis and sensitivity analysis. We develop custom macros and VBA programs that enable the manager to compare the effects on the bottom line of various initiatives under consideration. Our models allow the user to perform extensive cash flow analysis, ascertain funding needs, and determine optimal timing for raising capital.
Business Plan Development
Venstrat develops comprehensive business plans for capital raising, strategic planning, and other purposes. Our guiding principle is that a business plan should be exactly that: a plan for the business. Drawing on strategic, financial, and operational expertise, we offer thoughtful outside perspective that can unearth value creation opportunities.
A business plan must elucidate, not merely cover bases; rarely can a venture be shoehorned into a template. If the intended audience does not come away with a clear understanding of management's approach to creating value, the plan has not served its purpose.
Methodical examination of each critical area – product offering, technology, revenue model, marketing approach, to name a few – is central to our business planning efforts. The results of our thorough analysis are conveyed clearly and succinctly in order to be of maximum utility to potential investors and other decision makers. We make complex concepts accessible to those without expertise in your particular industry or markets. We clearly delineate the path to profitability and lay out an exit strategy, assessing the feasibility and precedent for an eventual IPO and/or sale to an industry leader.
Investors – venture capitalists, angels, private equity firms, acquirers, lenders – must quickly determine whether a venture is right for them, and the first impression almost always comes from the business plan. We hone in on what is unique and compelling about the venture, and clearly convey those factors to investors, alliance partners, clients, officers, and directors.
Drawing on our extensive capital raising and investing expertise, we bring a deep understanding of what investors need to see before committing significant resources to due diligence. In explaining the business model and strategy, we repeatedly come back to the issues critical to any stakeholder, including:
What differentiates the venture from competitors?
What unique advantages enable the venture to capture market share?
How significant is the market opportunity?
What are the risks, and how are they mitigated?
By making differentiating factors a central theme throughout, we help ensure that the business plan has maximum impact.
Venstrat, LLC 252 Nassau Street, 2nd Floor Princeton, NJ 08542 United States 609.924.2813