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Dr.GoldsmithservesasPresidentandChiefExecutiveOfficeroftheMississippiTechnologyAllianceandmaybecontactedatrgoldsmithtechnologyalliance.ms.Privateequityinvestmentinvolvesaninvestormakinganinvestmentintoabusinessventureinexchangeforapercentageofownership.Thepercentageofownershipisamathematicalformula.Thecomponentsoftheformulaarethepre-moneyvaluepresentvaluetheamountoftheinvestmentandthepost-moneyvaluesumofpre-moneyvalueplustheinvestment.Theinvestorsownershipisthepercentagetheinvestmentrepresentsofthepost-moneyvalue.Theprimarychallengeindeterminingvaluationisindeterminingthepre-moneyvaluepresentvalue.TheValuationSurveyprovidesfivedifferentmethodologiestodeterminethevaluationoftheproposedventureDoyouknowhowtovalueyourventureopportunityWhichvaluationmethodologyisbestforyourventureopportunityWhatisthevalueofyourventureopportunityTheValuationSurveytoolappliestheinformationgainedfromtheRiskReadinessLevelandotherinformationanddataprovidedtodeterminearealisticpre-moneyandpost-moneyvaluation.Thetoolprovidesmultiplemethodologiestodeterminevaluation.Differentvaluationmethodologiesaremoreappropriatetodifferentstagesofventuredevelopment.Thediscountedcashflowmethodismoredependableandreliableforcompanieswithactualproductsandrevenuesversusastartuporseedstagecompanywithnoproductorrevenue.Themultipleearningsmethodismostappropriateforservice-basedcompanieswithseveralyearsofrevenue.Theventurecapitalmethodismostappropriateforlaterstagecompanieswithahistoryofrevenue.Thismethodusesanaverageindustrypriceearningsfactorappliedtothenetpresentvalueofthefifthyearsrevenueprojectionstocalculateavalue.TheGoldsmithRiskReadinessMethodismostappropriateforstartupsthatarepre-productandpre-revenueandearlystagecompanieswithproductandlimitedrevenue.Thismethodisbaseduponindustrycomparisonsofaveragepre-moneyandpost-moneyvaluationsofventure-backedinvestmentsbystageofdevelopmentforthepreviousyear.Thetraditionalhypotheticalvaluationisadefaultvaluationmethodwhichprovidesatraditionalinvestmentperspectivebasedupontypicalinvestorandentrepreneurcriteriasuchasexpectedreturnoninvestmentandpercentageofequityparticipation.Thetraditionalvaluationisahypotheticalapproachandincorporatesnospecificqualitativevaluesorquantitativedatarelevanttotheventureotherthantheamountofinvestmentcapitalrequired.TheValuationToolprovidesseveralmethodologiestogenerateavalueofthebusinesspriortoinvestmentpre-moneyvaluationthevalueofthebusinessaftertheinvestmentpost-moneyvaluationandtheresultingpercentageofownershipequitytheinvestorreceivesfortheinvestment.Theusershoulddeterminewhichmethodologysismostapplicableforthevaluationdependingonthestageofthecompanythequalityofthefinancialmodel.TousethevaluationsurveytoolonlinerequiresthattheRiskReadinessLevelassessmentiscalculatedandsavedandtheinformationrequestedisprovidedintheClientSurveyunderValuation.ThefirstinformationrequestedisthePriceEarningsratiofortheindustrysector.Thiscanrangefrom5to80givenmarketconditions.Currently20isagoodnumbertouseifyouareindoubtofthenumber.ThePEindustrysectoraveragecanbefoundinfinancialwebsitesandbusinessnewspapers.Nextentertheamountofinvestmentcapitalbeingsought.TheonlineassessmentincludesapulldownmenutoselecttheStageofyourinvestmentopportunityPre-seedstageSeed-stagenoproductnorevenueA-roundorearlystageproductnorevenueB-roundormid-stageproductandrevenueC-roundorlate-stagegrowingmarketshareandMezzaninebridgefinancingforacquisitionorIPO.UsethesurveysamplestoevaluateyourventureandwhenyouarereadytodiscussaformalReadinessLevelassessmentcontacttheMississippiTechnologyAlliancetogetstarted.PointeInnovation36magazineValuationSurveyDescriptionPurposeScoring