Calculate valuations for the company Vampr using the scorecard and VC methods. part one is cut off but it is the scorecard method. All information needed is provided.
there is no more information to provide. If you need to find more information for Vampr it is on wefunder.
Attached is the offering statement
here is a more visible picture of the question
about how to assign factor weights. Assume a comparable pre-money valuation of $2,000,000 410 Other facere TOTAL VALUATION Part 2 - VC method. Complete the following steps to determine a valuation using the VC Method. For this assume the following: . A target return of 40%/year over 5 years A sales multiple of 3x They are raising $1,000,000 (close to their maximum desired amount) A. Calculate a projected revenue level for Vamp in 2023. Justify your calculation! am not looking for detailed projections but you should use the information in the Offering Statement to justify your answer B. Use your answer in A to calculation the Exit Value: C. What equity percent would they have to give up? NOTE: if you get an odd number here (too big or too small) you should re-visit your assumptions and calculations D. What is the post-money valuation? E. What is the pre-money valuation? Part 3 How do your pre-money valuations in Part 1 and Part 2 compare? Which do you think is a better valuation? Vampr The largest music social network is about to become a LinkedIn for all creatives Josh Simons Co-founder and CEO @ Vampr $ Last Funded January 2020! $492,389 1,149 total funds raised total investors 46 UPDATES ABOUT REVIEWS 481 78 ASK FOLLOW OCCUPATION JOINED 2016 DIRECTOR Barry Palmer Director @ Weyo Russell Colman Director @ Vampr Inc. David Rickert Director a BroadData Conferencing Joshua Simons CEO @ Vamprinc. 2019 2020 2016 Officers OFFICER TITLE Barry Palmer COO Russell Colman Treasurer Treasurer Joshua Simons President CEO Secretary JOINED 2016 2019 2016 Voting Power HOLDER SECURITIES HELD Bandlink Pty Ltd 425,173 Common Stock VOTING POWER 93.5% Past Equity Fundraises DATE SECURITY Priced Round 01/2020 01/2020 12/2018 12/2016 AMOUNT $503,098 $492,389 $534,447 $332,657 SAFE Convertible Note Priced Round Convertible Notes Outstanding ISSUED AMOUNT VALUATION CAP 12/31/2018 $534,447 None Outstanding Debts None. 481 UPDATES ABOUT REVIEWS ASK FOLLOW Outstanding Debts None. Related Party Transactions Name Bandlink Pty Ltd Amount Invested $0 Transaction type Other Issued 05/03/2019 Relationship Parent company The company entered into an advisory services agreement with Bandlink Pty Ltd on May 3, 2019 under which Bandlink would provide strategic and advisory services in exchange for payments of $17.500 per month Name Bandlink Pty Ltd Amount Invested $0 Transaction type Other Issued 05/02/2019 Relationship Parent company The company entered into an IP acquisition agreement with Bandlink Pty Ltd on May 2, 2019 under which the company acquired all of the intellectual property for Vamprin exchange for 425.172 shares of the company's Common Stock Name Bandlink Pty Ltd Amount invested $78,100 Transaction type Priced Round Issued 10/14/2019 Relationship Major shareholder with shared management Conversion of interim loan to Preferred Stock Use of Funds $100,000 App Dewelonment - 21000 Sales and Working Snaco: Martin 2000. IT Financials Vampr has financial statements ending December 31 2019. Our cash in hand is $715,899, as of March 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $1,450/month, and operational expenses have averaged $60,000/month. At a Glance January 1 to December 31 5555 $17,000 (82%) Revenue -$320,885 Net Loss LOU! $122,539 +84% Short Term Debt $0 Raised in 2019 $715,899 Cash on Hand As of 03/1/20 INCOME BALANCE NARRATIVE Revenues Profit $93,494 $17,000 S-268,427 $-320,885 2018 2019 UPDATES 46 481 ABOUT REVIEWS ASK FOLLOW S-268,427 $-320,885 2018 2019 A note from Wefunder. Unlike companies on the NASDAQ, early-stage startups have little operating history. Financial analysis is not as useful when there is limited data. It's more important to predict the size of the future market. If the founder achieves their vision, will enough customers pay the company enough money? It's also common for fast-growing startups to lose money even faster: they are investing in future growth. In these cases, it's often better to check if the cost of User Acquisition (CAC) is lower than the Lifetime Value (LTV) of that customer. If one spends $1000 today to make $10,000 over the next five years, that may be a smart bet. Amazon is a famous example of re- investing potential profits to maximize growth over 20 years. Net Margin: -1,888% Gross Margin: -2% Return on Assets: -71% Earnings per Share: -50.700 Revenue per Employee: $4,250 Cash to Assets: 79% Revenue to Receivables: 125% Debt Ratio: 61% In ALALLAR CA CO CT DECA TUTV Offering Statement The Offering URE OF THOS . mem co about how to assign factor weights. Assume a comparable pre-money valuation of $2,000,000 ITEM aRange bumpe Factor Rational Weight (a*b) 1. Strength of Entrepreneur and .30 Team 2. Size of the Opportunity 25 3. Product Technology .15 4. Competitive Environment .10 5. Marketing Sales Partnerships .10 6. Need for Additional Investment .05 7. Other factors great early .05 customer feedback) TOTAL VALUATION: Part 2 - VC method. Complete the following steps to determine a valuation using the VC Method. For this assume the following: A target return of 40%/year over 5 years A sales multiple of 3x They are raising $1,000,000 (close to their maximum desired amount) A. Calculate a projected revenue level for Vampr in 2023. Justify your calculation! am not looking for detailed projections but you should use the information in the Offering Statement to justify your answer. B. Use your answer in A to calculation the Exit Value: C. What equity percent would they have to give up? NOTE: if you get an odd number here too big or too small) you should re-visit your assumptions and calculations. D. What is the post-money valuation? E. What is the pre-money valuation? Part 3 How do your pre-money valuations in Part 1 and Part 2 compare? Which do you think is a "better" valuation? about how to assign factor weights. Assume a comparable pre-money valuation of $2,000,000 410 Other facere TOTAL VALUATION Part 2 - VC method. Complete the following steps to determine a valuation using the VC Method. For this assume the following: . A target return of 40%/year over 5 years A sales multiple of 3x They are raising $1,000,000 (close to their maximum desired amount) A. Calculate a projected revenue level for Vamp in 2023. Justify your calculation! am not looking for detailed projections but you should use the information in the Offering Statement to justify your answer B. Use your answer in A to calculation the Exit Value: C. What equity percent would they have to give up? NOTE: if you get an odd number here (too big or too small) you should re-visit your assumptions and calculations D. What is the post-money valuation? E. What is the pre-money valuation? Part 3 How do your pre-money valuations in Part 1 and Part 2 compare? Which do you think is a better valuation? Vampr The largest music social network is about to become a LinkedIn for all creatives Josh Simons Co-founder and CEO @ Vampr $ Last Funded January 2020! $492,389 1,149 total funds raised total investors 46 UPDATES ABOUT REVIEWS 481 78 ASK FOLLOW OCCUPATION JOINED 2016 DIRECTOR Barry Palmer Director @ Weyo Russell Colman Director @ Vampr Inc. David Rickert Director a BroadData Conferencing Joshua Simons CEO @ Vamprinc. 2019 2020 2016 Officers OFFICER TITLE Barry Palmer COO Russell Colman Treasurer Treasurer Joshua Simons President CEO Secretary JOINED 2016 2019 2016 Voting Power HOLDER SECURITIES HELD Bandlink Pty Ltd 425,173 Common Stock VOTING POWER 93.5% Past Equity Fundraises DATE SECURITY Priced Round 01/2020 01/2020 12/2018 12/2016 AMOUNT $503,098 $492,389 $534,447 $332,657 SAFE Convertible Note Priced Round Convertible Notes Outstanding ISSUED AMOUNT VALUATION CAP 12/31/2018 $534,447 None Outstanding Debts None. 481 UPDATES ABOUT REVIEWS ASK FOLLOW Outstanding Debts None. Related Party Transactions Name Bandlink Pty Ltd Amount Invested $0 Transaction type Other Issued 05/03/2019 Relationship Parent company The company entered into an advisory services agreement with Bandlink Pty Ltd on May 3, 2019 under which Bandlink would provide strategic and advisory services in exchange for payments of $17.500 per month Name Bandlink Pty Ltd Amount Invested $0 Transaction type Other Issued 05/02/2019 Relationship Parent company The company entered into an IP acquisition agreement with Bandlink Pty Ltd on May 2, 2019 under which the company acquired all of the intellectual property for Vamprin exchange for 425.172 shares of the company's Common Stock Name Bandlink Pty Ltd Amount invested $78,100 Transaction type Priced Round Issued 10/14/2019 Relationship Major shareholder with shared management Conversion of interim loan to Preferred Stock Use of Funds $100,000 App Dewelonment - 21000 Sales and Working Snaco: Martin 2000. IT Financials Vampr has financial statements ending December 31 2019. Our cash in hand is $715,899, as of March 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $1,450/month, and operational expenses have averaged $60,000/month. At a Glance January 1 to December 31 5555 $17,000 (82%) Revenue -$320,885 Net Loss LOU! $122,539 +84% Short Term Debt $0 Raised in 2019 $715,899 Cash on Hand As of 03/1/20 INCOME BALANCE NARRATIVE Revenues Profit $93,494 $17,000 S-268,427 $-320,885 2018 2019 UPDATES 46 481 ABOUT REVIEWS ASK FOLLOW S-268,427 $-320,885 2018 2019 A note from Wefunder. Unlike companies on the NASDAQ, early-stage startups have little operating history. Financial analysis is not as useful when there is limited data. It's more important to predict the size of the future market. If the founder achieves their vision, will enough customers pay the company enough money? It's also common for fast-growing startups to lose money even faster: they are investing in future growth. In these cases, it's often better to check if the cost of User Acquisition (CAC) is lower than the Lifetime Value (LTV) of that customer. If one spends $1000 today to make $10,000 over the next five years, that may be a smart bet. Amazon is a famous example of re- investing potential profits to maximize growth over 20 years. Net Margin: -1,888% Gross Margin: -2% Return on Assets: -71% Earnings per Share: -50.700 Revenue per Employee: $4,250 Cash to Assets: 79% Revenue to Receivables: 125% Debt Ratio: 61% In ALALLAR CA CO CT DECA TUTV Offering Statement The Offering URE OF THOS . mem co about how to assign factor weights. Assume a comparable pre-money valuation of $2,000,000 ITEM aRange bumpe Factor Rational Weight (a*b) 1. Strength of Entrepreneur and .30 Team 2. Size of the Opportunity 25 3. Product Technology .15 4. Competitive Environment .10 5. Marketing Sales Partnerships .10 6. Need for Additional Investment .05 7. Other factors great early .05 customer feedback) TOTAL VALUATION: Part 2 - VC method. Complete the following steps to determine a valuation using the VC Method. For this assume the following: A target return of 40%/year over 5 years A sales multiple of 3x They are raising $1,000,000 (close to their maximum desired amount) A. Calculate a projected revenue level for Vampr in 2023. Justify your calculation! am not looking for detailed projections but you should use the information in the Offering Statement to justify your answer. B. Use your answer in A to calculation the Exit Value: C. What equity percent would they have to give up? NOTE: if you get an odd number here too big or too small) you should re-visit your assumptions and calculations. D. What is the post-money valuation? E. What is the pre-money valuation? Part 3 How do your pre-money valuations in Part 1 and Part 2 compare? Which do you think is a "better" valuation
