How do different types of investors think about an investment opportunity? What kind of securities and contracts do they offer? How should a company decide what is a "good deal"? This course is designed to introduce you to the challenges and pitfalls of financing new enterprises. You will learn the basic tools for valuating companies, including using discounted cashflow analysis in Excel and understanding how to apply this model to your entrepreneurial venture. You will then learn how valuation works with different types of securities that investors use to finance startups, from bank loans to venture capital to angel investing.
Startup Valuation Methods
Startup Valuation Methods
This course is part of Entrepreneurial Finance: Strategy and Innovation Specialization
Instructors: Manuel Adelino
48,738 already enrolled
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Gain insight into a topic and learn the fundamentals.
4.4
(723 reviews)
Intermediate level
Some related experience required
Flexible schedule
Approx. 6 hours
Learn at your own pace
78%
Most learners liked this course
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Shareable certificate
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Assessments
18 assignments
Taught in English
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This course is part of the Entrepreneurial Finance: Strategy and Innovation Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
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There are 5 modules in this course
In this module you will learn the general framework for valuing companies: prices as the discounted value of future cash flows. We will focus on how to determine cash flows and how discounting works. At the end of the lectures you will be able to understand the basics of how investors determine the value of a company.
What's included
5 videos1 reading1 assignment
In this module we will apply what you learned in the previous module. At the end of the module you will have built your first financial model of a firm, which you can change to apply to valuing a large firm or a small startup.
What's included
10 videos1 reading1 assignment
In this module we will consider how very high failure rates for startups affects what you learned in the previous modules. The short answer is: it doesn’t, as long as we understand what business plans and company forecasts really are.
What's included
4 videos1 assignment
In this module we will review the main sources of capital that founders of startups turn to when they raise capital to launch their business.
What's included
9 videos10 assignments
In this module we will conduct an in-depth analysis of angel investors and the securities they use when they invest in early-stage startups
What's included
5 videos5 assignments
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Instructors
Instructor ratings
4.3 (247 ratings)Offered by
Explore more from Finance
Status: Free TrialYonsei University
Status: Free TrialUniversity of Maryland, College Park
Status: Free TrialYonsei University
Status: Free TrialUniversity of Maryland, College Park
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4.4
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Showing 3 of 723
LG
4
Reviewed on Dec 3, 2021
The instructor communicated the concepts well. However, there is a number of mistakes for the Quiz in Week3. Revisit them and ensure that the answers are provided are accurate, please.
AA
4
Reviewed on Aug 31, 2024
It was an informative course. 4 not 5 stars as module 4 was not explained well enough. Information how to calculate a hurdle rate and a few other calculations were missing.
OC
4
Reviewed on May 3, 2021
Great course overall. I particularly enjoyed week 1 and 2 on start-up valuation tools, the professor was very articulate. Week 3 and 4 slides were not always optimal.
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