New simple valuation sheet in Venture Valuation Tool
March 29, 2024
Added a new Simple Venture Valuation sheet to the Venture Valuation Tool to provide an alternative example of doing the math to calculating the returns to an investment.
One of my beliefs about building tools like this is that all analysis involves tradeoffs between complexity and ease of use, and that the fundamental goal of an analyst is to develop the appropriate level of complexity for the depth of insight required to make the decision at hand.
The goal for this sheet is not to be a comprehensive analysis (that would be the Venture Valuation sheet in the tool), or to be the only way to do it, but instead provide an instructional example for how to evaluate the returns to an investment (gross multiple and gross IRR) with an intentionally limited set of data. The method in this sheet is built using a set of tradeoffs that makes sense to me to help with analysis, but will not work for all situations, so treat it as an instructional resource to help you build your own analysis for your specific situation.