The Valuation World Cup Begins!

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It is what you all have been waiting for, the Valuation World Cup is here!  You didn’t think C:V. would miss a chance to mimic a world-class tournament with our own blend of VC/Startup/Finance nerdiness did you?? (For the uninitiated, see our Term Sheet Madness/March Madness competition here)

The Plan:

Much like the World Cup we have 16 “teams” of valuation metrics divided into four Groups (A-D). We will be conducting group play over the next two weeks and then the top two teams will advance from each group for the knockout stages where a winner will be crowned!

The Criteria:

With each “team” we will be providing the following:

  • Explanation and Use Case
  • Pros and Cons
  • Example

We hope these will provide a solid foundation for understanding the concepts. We will also be providing commentary on “match highlights” and other cool tidbits along the way.

The Field:

Group A (Angel)

  1. Adjusting the Average
  2. Build Up
  3. Cost-to-duplicate (Build or Buy)
  4. Recent Transactions

See the Group A winners here!

Group B (Business)

  1. Enterprise Value/Sales
  2. Enterprise Value/EBITDA
  3. Enterprise Value/Sales Expense
  4. Discounted Cash Flow

See the Group B winners here!

Group C (Customers)

  1. Churn
  2. Enterprise Value/Lifetime Customer Value
  3. Enterprise Value/Monthly Active Users
  4. Market Share/Market Size

See the Group C winners here!

Group D (Miscellaneous)

  1. Ownership %
  2. Acquisition Value (Attach Rate)
  3. Enterprise Value/Patent
  4. Exit Multiple

See the Group D winners here!

Knockout Stages and Playoffs:

Quarterfinal 1: EV/Sales vs Recent Transactions

Quarterfinal 2: Adjusting the Average vs. EV/EBITDA

Quarterfinal 3: EV/LCV vs. Ownership %

Quarterfinal 4: EV/MAU vs. Acquisition Value (Attach Rate)

Semifinal 1: EV/LCV vs. EV/Sales

Semifinal 2: Adjusting the Average vs. Acquisition Value (Attach Rate)

C:V. VWC Final: EV/Sales vs. Acquisition Value (Attach Rate)

Get Social!

Feel free to follow along and/or tweet along with #CVWC

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17 thoughts on “The Valuation World Cup Begins!

  1. Pingback: Monday Morning Memo | Capital: Ventured.

  2. Pingback: Valuation World Cup: Group B – (Business) | Capital: Ventured.

  3. Pingback: Valuation World Cup: Group A – (Angel) | Capital: Ventured.

  4. Pingback: Valuation World Cup: Group C – (Customers) | Capital: Ventured.

  5. Pingback: Round of the Week – SpotlightTMS | Capital: Ventured.

  6. Pingback: Monday Morning Memo | Capital: Ventured.

  7. Pingback: Valuation World Cup: Group A – Winners Revealed! | Capital: Ventured.

  8. Pingback: Valuation World Cup: Group B – Winners Revealed! | Capital: Ventured.

  9. Pingback: Monday Morning Memo | Capital: Ventured.

  10. Pingback: Valuation World Cup – Group C Winners Revealed! | Capital: Ventured.

  11. Pingback: Valuation World Cup – Group D Winners Revealed! | Capital: Ventured.

  12. Pingback: Monday Evening Memo | Capital: Ventured.

  13. Pingback: Valuation World Cup: Quarterfinal 1 – EV/Sales Cruises to Victory! | Capital: Ventured.

  14. Pingback: Valuation World Cup: Quarterfinal 2 – Financial Powerhouse Upset! | Capital: Ventured.

  15. Pingback: Valuation World Cup: Quarterfinal 3 – The Customer continues to be right! | Capital: Ventured.

  16. Pingback: Valuation World Cup: Quarterfinal 4 – MAU Goes Down! | Capital: Ventured.

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