Module 6: Introduction
How much is your company worth to investors? This module will look at several of the methods used by investors, in both Africa and elsewhere, to value companies for equity investment. In particular, this session focuses on why Silicon Valley valuations are higher than comparable companies anywhere else in the world.
1. General approaches to valuation
a. MBA methods
b. US angel valuation tools
c. Risk-adjusted ideal outcome
d. Market comparables
2. Using appropriate valuations
Outcome: Companies will have a more realistic expectation of what an equity investment will mean in terms of their own ownership, both immediately post investment and over the life of the company. Realistic valuation expectations in turn increase the chances of fundraising success.