Optimizing the Only KPI that Matters: g

Tuhaye Venture Partners Yellow City

Safe to say, it doesn’t really work for startups. As I’ve said previously, without significant amounts of capital on hand to fund the business over the long-term, a DCF analysis of a startup is likely to return a valuation of zero.

Equity Leverage And Measuring Risk

Tuhaye Venture Partners Yellow City

At Tuhaye, we strive to quantify early-stage risk so that we can utilize it in our pricing methodology. One of our simple measures to evaluate the underlying Risk at an investment is to look at a company’s Equity Leverage at the time of financing.