$1.$ What are the challenges of valuing an early$-$stage company?There are many challenges involved in valuing early$-$stage, start$-$up companies. Typically,companies are valued using the available information about business operations andfundamentals along with the risks faced by potential investors. However, with new businesses,both of these metrics are unavailable for the most part. It is difficult for analysts to preciselydetermine the risk that investors will take on as there are many components of the business thatare still unknown.

$2.$ In what ways is ORN a typical start$-$up company? In what ways is it atypical?ORN is a typical start$-$up company in a few ways. It has less than $100$ employees, you have aCEO feeling stretched with many responsibilities and in need of assistance, and you have acompany attacking a common problem from a different angle. ORN is looking to be a disrupterin the world of wireless internet, providing service to previously underserved areas and doing itin a cost$-$effective way. ORN is atypical in that it has been profitable since the beginning of itsoperations. Typically, start$-$ups take many years to become profitable, carrying losses due tointense spending early on$.$ However, due to ORN$$s lean operations, simple product design, andindirect sales model, they were able to realize profits immediately.

$3.$ What is the value of the firm under the venture capital method?As per instructions in the discussion for this case, enter data for two valuations and resultingpercentage stake for Everest Partners. One that tries to get as close as possible to the equity stakedemanded by the investors, and another one where the inputs are closer to the situation ofOutReach.