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During my semester in school, I was exposed to a myriad of methodologies and techniques via machine learning or econometrics to help with prediction or improvements in forecasting. Coupled with my interest in start-ups and venture capital, a spark came about where I could possibly use these skills that I have learnt in school and analyze some data in a start-up ecosystem may help me get a better understanding on what entail success for a start-up.

In a recent paper by Gompers, Gornall, Kaplan and Strebulaev (2019) — How do venture capitalists make decisions; they conducted a deep analysis and survey on many venture capital(VC) firms on how they formulate their decisions to commit towards an investment. Although it was a comprehensive coverage towards a VC’s decision making on deal sourcing, investment, structuring of term sheet, etc, I will be mainly focusing on the investment portion and what factors the firms believe that attribute towards success. …

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Hello! Apart from being interested in the venture capital ecosystem, I’m really into the equity research/financial modelling domain and I’m constantly trying to improve on my analytical skills. Besides, I love checking out the financial markets in the equities asset class — where I’ll be investing my money in them :)

In this publication, I will be releasing my first every equity research report! However, I do understand that there are some things that can help me to tie up loose ends such as

  1. Football valuation chart
  2. Comparable Companies Analysis(CCA)
  3. Dissecting my models into various segments — Revenue projection, Working Capital , etc. …

Hi there! In the 2nd part of my crash course series pertaining to how the VC industry is being operated, I’ll be covering another segment as per the book’s content, Venture deals by Bred Feld and Jason Mendelson. The main coverage in this post will consist of:

  1. Economics terms of the Term Sheet
  2. Control terms of the Term Sheet
  • WARNING: This post will be rather dry, so be prepared to put on your thinking cap and stay vested till the conclusion. Nevertheless, these nuances are important especially when you sit in/engage in a VC discussion regarding valuation and negotiation.

Economics of a Term Sheet

In a VC context, economics refer to the returns investors will ultimately receive in a liquidity event, usually stemming from either a sale of the company or an IPO. This will include specific terms that have a direct impact on their returns. These are important key concepts to register apart from the valuation, as the sum of money you will receive in the end may not to amount to the fair value that you have dictated the company to be. …

Having spent a day or two being part of the STEV team, I have come to realise that there were many key terms & terminologies that I’m not proficient within the VC industry. Further, if I am to expedite my learning process through the meetings that I’m attending, its for the best to get down into learning out what is important in the talks of the VC realm. As a result, I decided to get back to reading Venture Deals by Brad Feld & Jason Mendelson , a book that was rotting in my read list for quite some time. I actually did browse through it occasionally but most of the terminologies turned me off since on hindsight, I did not have exposure to such meetings that involved buzzwords, hence not allowing me to relate to the book pretty well. However, I have grown to develop better insights on the book and certain basic concepts that an entry level hire will need to understand, so let me do my best to put up a summary for the benefit of everyone! …

There has always been a probable debate between employing proper allocation of resources towards Research & Development(R&D) or accelerating the former process through the deployment of a corporate venture capital fund. Will the cost savings be worth the extended time period for innovation, or will time be of greatest essence to spur future growth of the company?

Although such a dilemma has always been existent throughout the strategic planning process of a company’s vision, empirical research has calculated that since the unprecedented boom of corporate venture during the 1990s , every dollar invested in a venture was three or four times as potent in stimulating innovating as a dollar a company would invest in its internal R&D. …

With regards to valuation, I would like to think that I have been roughly exposed to a few types of valuation methods. This can range from self-learning a 3 statement model along with DCF analysis to determine a stock’s value and determine its potential upside/downside, Company Comparable Analysis(CCA) for relative valuation, to a Black Scholes Model that deals with valuing stock options when i took Financial Economics I/II modules in school. …

Hello! Its my 2nd week as an analyst with ST Engineering Ventures, and there are many skills/insights that I’m still trying to pick up with regards to my role. I have ventured a little into the books and after going through many webinars and discussions, the main point into start-ups gaining traction and success always boils down to key factors that go down the thought process:

  1. What are the pain points in certain industries and how can start-ups solve for it moving forward?
  2. Are the products/solutions that start-ups provide align with the trend of what the society envisions for the economy? …


Nathaniel Theodore Ling

Always interested over topics on venture capital, start-ups, macroeconomic outlook & equity research on different sectors.

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