Posts tagged Options
Valuing Venture Deal Terms

For my final project in my entrepreneurial finance class this year at Tuck, I decided to look at different methods for valuing early stage companies. I ended up building a model for valuing early stage companies using the options based valuation approach. I found the model was highly useful for a) simply determining the value of a company based on deal terms likes liquidity preference and participation rather than a traditional post or pre-money analysis and b) measuring the dollar or equity cost of including different features in deals like liquidity preference and participation. 


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