Frequently Asked Questions (FAQ)

Who needs Venture Valuation’s services?
Anyone who wants an independent assessment and valuation of a high growth company, be it the management of the company or existing or potential investors. To-date, approximately half of our clients are management of high-growth companies, with the other half including professional corporate, private or institutional investors with interests in high-growth comapnies.

What are Venture Valuation’s greatest competitive advantages?
Venture Valuation is solely focused on the assessment, valuation and monitoring of tech driven, high growth companies. This differentiates us from our competitors, who do not concentrate on this service. Additionally, Venture Valuation has already developed strong internal know-how with over 150 valuations, which can be leveraged to provide even better services for its future clients. Finally, we are constantly in contact with entrepreneurs and investors, which gives us a great overview of the development of the industry.

What does assessment, valuation and monitoring of a high-growth company mean?
Assessment is the process of understanding the business model and understand the strengths and weaknesses of the market, the management and the science&technology. Based on this information a risk analysis of the company is established.

Valuation is the calculation with financial models (Discounted Cash Flows, Risk-adjusted Net Present Value, Market Comparables, Comparable Transactions, Venture Capital Method, Decision tree/Real Options) of a value range for the company (also see Valuation Methods). This is based on the assessment and risk analysis.

Monitoring means the follow-up of the company over time with regard to milestones set. It is an exernal reporting tool for funds, corporate investors, but also the companies themselves to have valuation tracking. For the monitoring we use a balanced score card approach with the five dimensions: Vision&Strategy, Company Development, Customers, Market and Finance.

On which industries does Venture Valuation focus?
Venture Valuation offers its services to high growth companies in any industry. However, the strongest focus to-date has been on life sciences, with close to fifty percent of the companies valued coming from the biotechnology and medical device fields. Other assessments and valuations have been performed in other sectors, including IT, high-tech, media, telecom and wireless/mobile.

Why use Venture Valuation?
Venture Valuation has considerable experience in the valuation of high-growth companies, and through our unique position in the industry, we are able to understand the current issues from the perspective of investors and companies. Our consultants have vast experience in valuation, investment and financing, in addition to specific expertise in the life science sector including regulatory affairs, patenting, and scientific experts. With over 150 valuations performed to date we have refined our core competencies in the assessment, valuation and monitoring of high growth firms. Consequently we are dedicated to provide high quality services and offer our clients a unique, personalised and independent report.

What is the benefit to the customer of the Valuation Report?
An independent Valuation Report provides the company or the investor with a basis for negotiation and the decision to make an investment. With an independent perspective, we are able to uncover and understand the future potential of a company, but also identify the risks involved and thus provide an objective and balanced view. Furthermore, following a comprehensive assessment of the company, we are able to underline the strengths and limitations of the business model and strategy, and identify the key value drivers that investors search for when evaluating high-growth companies.

How is Venture Valuation compensated for services?
Venture Valuation has chosen to operate as an entirely independent services company. Therefore we do not accept shares or a percentage of future revenues from the companies we value. Our business model is based on affordable flat fees for all services. We are dedicated to transparency and our service quotes include all expenses. Please feel free to contact us to receive a quote.

How long does the valuation process take?
It takes approximately four weeks to complete a Valuation Report. This includes one to two days with the management of the company at an on-site workshop. In this workshop we can already provide the management with suggestions how to increase the long-term value of the company (value based management). The on-site workshop is a critical part of the valuation process that provides us with a comprehensive understanding of the business model and strategy of a company. This is then used as a platform for our analysts to generate the Valuation Report, which is provided to our clients within three weeks of the workshop.

Does Venture Valuation provide financing?
Venture Valuation is not a venture capitalist firm. However, due to our close relation with customers in the VC sector, we can help companies to find the right investor and broker contacts after we have worked with the company. Since Venture Valuation has established itself in the market as an independent valuation company, some investors use our reports as a primary decision tool as part of the in-house investment process.