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Download PDF November 2009 Newsletter

Advanced Valuation Methods

Intellectual Property, Research, New Ventures 

Monte Carlo simulation is a well established method for simulation in engineering models - including ray tracing and tolerancing of optical systems. Monte Carlo simulation, Real Option, and other advanced mathematical methods are being applied more and more to financial modeling and valuation of high risk, intangible assets such as intellectual property, R&D, and venture capital financed businesses.

Traditional Discounted Cash Flow (DCF) methods that employ a single discount rate regardless of risk mitigation as time passes and static forecasts assuming absolute certainty and no option of abandonment often yield valuation conclusions that not even the most risk tolerant investor, product manager or CEO would tackle. Yet, these high risk opportunities can offer enormous rewards. See how these advanced methods give insight at critical decision points and better account for high risk, high reward intangibles in early stage financings, impaired asset judgments, and licensing transactions. 


Financing New Ventures

Bootstrapping:  Harvesting Technology Early

When start-up or growth capital is not available or at a very high cost, bootstrapping is a feasible strategy - even for high technology ventures requiring significant assets, a highly specialized and costly workforce, and years to bring its first products to market.  It is often, however, a last resort - considered only after burning through many months shopping business plans to venture capital firms, lenders, or those at established corporations managing the R&D budget.  Instead, consider bootstrapping and harvesting your most valuable asset - your technology - for cash, strategic customer relationships, market intelligence, application know-how and more.      


Entrepreneur of the Year Awards

Ernst & Young Strategic Growth Forum

In a program launched by Ernst and Young to break open new networks for women entrepreneurs, Linda Smith, founder of CERES, is invited to participate in this week long forum whose grand finale is the Entrepreneur of the Year Awards.      

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