Raising Finance for business & understanding Valuation

What you'll learn

• Different Sources of capital

• Advantages and Dis-advantages of sources

• What are different aspects of business valuation

• Different Methods of valuation

Reed courses certificate of completion

Digital certificate - Included

• Introduction & Fund Raising 53:49

  • 1: 1. Recap of Previous classes Preview 02:45
  • 2: 2. Traditional Capital Raising Preview 06:42
  • 3: 3. Startup Financing and Stages 14:52
  • 4: 4. Early Stage Financing - Own capital, crowdfunding and leasing 12:54
  • 5: 5. Early Stage Financing - Angel Investing, VC Capital 16:36

• Valuation Concepts 1:19:03

  • 6: 6. Why we need valuation and is it objective Preview 07:11
  • 7: 7. Business Valuation Concepts 07:11
  • 8: 8. process of valuations and factors that affect valuations 11:25
  • 9: 9. Valuation Methods and Market Approach 13:24
  • 10: 10. Income Valuation Approach 08:40
  • 11: 11. Discounting rate and how we determine it 13:14
  • 12: 12. Other Methods of valuation and Conclusion 17:58

Raising money is one of the hardest things you will do in business. It is never a job completed either, as your business grows, so does your need for capital. Your business requirements will probably be a lot more than just a small business loan.

ways to raise finance depends on what level in your business are in, early stage, product stage, growth stage, or expansion. amount and way to raise money vary significantly due to different risks and rewards involved.

You may need to evaluate between various options such as

The Banks - Nearly always the first port of call for anyone looking for financing options, although not always the best.
Crowd Funding - These are online funding platforms that work by 'pooling' investors together through a third party (online platform) to offer business loans to small and large businesses alike.
Peer-To-Peer Lending & Business Angels - Again they are usually online platforms where individual investors look to lend their money, at their own risk (terms vary), with timescales and returns agreed upon at the outset.
Friends and Family - Even Richard Branson borrowed heavily from his mother when trying to get his Virgin Records label off the ground.

Other types of finance include Asset Finance, Invoice Finance, private equity, cash advance and business grants.

Use your own money - Most other investors, banks included, don't like it when you haven't put up some of your own money into your company.
Establish key partners - Getting key suppliers, customers (or distributor) on board early can be a game-changer later down the line. Having them believe in you from the get-go will ensure that they can be willing partners further down the line.
Ask customers for upfront money - If you can't afford to extend traditional credit terms to your customers then don't, ask the to pay up front or agree to payment on completion.
Don't buy equipment - Consider leasing your equipment instead of buying it.
Outsource - Instead of incurring fixed costs for overheads, wages and equipment, consider outsourcing operations instead.

In this course we will explain all these in more details and pro and cons of each method so you can understand and make your decisions better.

This course was recorded during a live class with startup founders who do not have any formal background in accounting and finance. Course contents, speed and explanations are designed keeping in mind those users, hence other users may find it slow and sometimes repetitive. I repeated few things just to make my audience understand and absorb concepts.

What are different methods of raising capital and what they cost.

Understanding the business value and do self-valuations
• What is Value?
• Value from different prospective.
• Different Methods of Valuation.
o Income Approach
o Cost Approach
o Comparable
• Inherent limitations and uncertainties of valuation models.
• How can we enhance value of our business?
• Share your experiences with valuation and how inventors value your startup

• Startup Founders and Co-Founders
• Entrepreneurs
• Business Owners

• Previous Four Sessions

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