WHY DOES IT MATTER?
The languishing death of a high-growth startup is mediocre valuation growth because you are valued more on your growth rate than your present status (e.g. present revenue, product status, market fit etc.).
HOW DO WE ACCELERATE VALUATION and liquidity?
Company Development
In general we perform Company Development. Not Business Development...but rather Company Development. Most high-growth startups focus on two areas of success, which are revenue and product development. However, there’s a third leg to the stool, which is Company Development, namely the strategies and processes to prepare the startup for an acquisition or IPO at a substantially increased valuation and much shorter timeline. Specifically, how does The Valuation Accelerator do this? Keep reading!
Hockey Stick Problem - Financial Planning and Strategy in Hyperdrive
If a high-growth startup has the potential to grow exponentially, then a careful and strategic financing plan and budget must be implemented so that the startup has enough funds in one period to cover the COGS for the next period. Present earnings (if any) will not be enough in an exponentially growing startup. If the startup cannot achieve this, they will not achieve valuation and liquidity acceleration in spite of its awesome product and market.
Why is it called the hockey stick problem? If your future revenue is going to grow like a hockey stick, when you must spend money on parts, manufacturing, development and/or services in the current period (the hockey stick's shaft), but you will not achieve revenue to pay it off until later (the hockey stick's blade). There is a time gap between paying and getting paid, which must be solved!
Maturation Process - Get Your S**t Together
A large percentage of acquisitions fail because of poor integration, and having an immature company only exacerbates the problem. Many acquiring companies will be reluctant to acquire an immature company. Further, investment banks will not take an immature company public, requiring you to pay large sums at the last days to get your company ready for an IPO. Before your eventual acquisition or IPO, your startup must look like a mature company. That means audited financials, proper policies, procedures, checks & balances and more.
Objective, Enforced KPIs - Successful Companies Do Not Suffer Average Managers and Leaders
To grow, your startup must have objective Key Performance Indicators (KPIs) that are known and used in your industry. Further, you must show improvements in the KPIs over time to accelerate valuation and liquidity. If your leaders and managers do not follow these KPIs or if you do not hold them accountable for missed KPIs, your startup will not grow or be acquired.
Acquisitions and IPOs Do Not Happen By Accident
The title says it all. We at The Valuation Accelerator work with you to create a "rolling thunder" of good news to potential acquirers and investment bankers. Outreach to these parties and relationship-building with these decision makers are essential for an accelerated valuation and liquidity.
Why The Valuation Accelerator?
We have done this many times before in many industries. We do not take all clients as we have only the time to work with dedicated, smart founders who want to "get there."
About THE VALUATION ACCELERATOR, PLLC
Our Vision
Our Approach
Our Vision
At The Valuation Accelerator, our vision is to solve seemingly intractable financial and legal issues for high-growth startups. We achieve this by our innovative "company development" and "maturation" processes for startups - we prepare you now for a successful IPO or acquisition while at the same time accelerating your valuation and timeline for liquidity.
Our Team
Our Approach
Our Vision
Our team is comprised of highly skilled veterans with extensive experience in various industries...most notably high-growth startups. We also have advanced degrees (JDs and MBAs) from highly rated universities.
Our Approach
Our Approach
Our Approach
We are tactical as well as strategic. We listen to your problems and launch processes to help you achieve successful financings, milestones and eventual liquidity. We work only with startup founders who are practical and have a clear vision of where they want to go. We show you the way to get there!
Contact Us
Brian@TheValuationAccelerator.com
Feel free to email me to ask about how we can help your startup or portfolio.