The Cyprus Entrepreneurship Competition challenges scientists, startup founders, and hi-tech entrepreneurs to transform their ideas into real business opportunities. The Competition’s objective is to develop start-ventures or social enterprises that create competitive advantage and innovation. Navigator Consulting supports the Cyprus Entrepreneurship Competition as a sponsor.
Limassol, Cyprus: 24 November 2020
The 20th Cyprus Entrepreneurship Competition is now in the business acceleration stage. Of 36 applicants, 9 were selected to enter the acceleration stage, where they benefit from coaching and mentoring from an international group of experts and founders.
Yesterday, Philip Ammerman of Navigator Consulting provided training to the 9 startups on the subject of start-up valuation. This training is important because most of the start-ups are at the seed or pre-seed stage, and in most cases pre-revenue as well.
The training covered nearly three hours of instruction on topics such as:
The current market for startups and investments, and the differences seen in valuations between areas like San Francisco, London, Athens and other locations.
The process of reaching an agreement with investors, including due diligence, term sheet negotiation and legal/contracting.
Widely accepted methods for financial valuation of startups, including the Venture Capital Method; Discounted Cash Flow Method; Berkus Method; Scorecard Valuation Method; Risk Factor Summation Method; Cost-to-Duplicate Method; Valuation by Stage Method; Comparables Method; Book Value Method (mainly for liquidation); and the First Chicago Method.
Non-financial and non-tangible methods of valuation, including users and daily active users; user growth; prototype stage; price discovery; customer/contract discovery; A/B testing and pilot testing; team; and more. This also provides insight into the business model and product market fit.
Data and materials needed by startups, including a business plan, financial model, risk analysis, prototype or equivalent, market research, governance structure, etc.
Term sheet issues, including Pre- and Post-Money Valuation; Capitalization Table; Voting Rights; Reserve Matters; Governance Structure, Board, Key Officers; Liquidation Preferences for Shareholders; Employee Stock Option Plans; Vesting Schedules and Terms (Equity Release); Dilution and New Investors.
The training is important because this is one of the few times young entrepreneurs will be exposed to the detailed and sensitive issues required by investors.
The next steps of the 20th Cyprus Entrepreneurship Competition include:
Finalisation of the Accelleration Programme;
Submission of the 9 Business Plans
Announcement of the Final Winners.
We are honoured to support and sponsor the 20th Cyprus Entrepreneurship Competition, and feel that this initiative is one of the best-organised one given the 2-stage process of initial selection and then business acceleration.
We wish all the applicants good luck with their business plan preparation.
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