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Price or Relationship: SecureNow's Dilemma
內容大綱
In April 2014, the founder of SecureNow met with one of his classmates who was now an angel investor. The two had recently met socially and the founder had briefed his classmate on SecureNow’s online business-to-business insurance marketplace. The classmate was now expressing interest in investing in SecureNow but his valuation was much lower than the founder’s expectation. The founder was confident of SecureNow’s future growth, but he wanted funds to expand. His classmate would provide him with the kind of relationship he was seeking with an investor, but the founder wondered how he and his classmate arrived at such different valuations. He also wondered whether he should accept the funds at a low valuation, consider other options, or just postpone his expansion plans.
學習目標
This case is suitable for an MBA course in entrepreneurial finance and business valuation techniques, especially when valuing start-ups. This case will help students appreciate the issues that arise when estimating the value of private companies, especially start-ups, which have little financial history. The case provides sufficient data for students to make valuations using a discounted cash flow approach and a multiples approach (using both forward and trailing multiples). By working through this case, students will appreciate the assumptions that contribute to these calculations and understand why valuations will vary when using different methods. This case also presents a platform for students to learn about non-pecuniary aspects of evaluating start-up financing options.