Valuation and Financial Analysis For Startups Capstone

About this course: This is a peer review course. In the capstone project, you are going to apply what you have learned in the previous courses. The final output from this project is an estimation of a firm. You can choose either a public company or a startup depending on the availability of information on the firm. If you have your own startup, then you can do this capstone project on the startup. If not, then you can do this project of a public company. Therefore, the first step is selecting an actual company that you are interested in. Next, you have to do the research on and describe the firm’s industry and business. Based on your research, you make an estimate of firm’s growth, cash flows and earnings. In order to do this, you need to apply what you have learned in financial statement analysis. Once you find firm’s cash flows and earnings, you can apply what you have learned in discounted cash flow method and multiple methods to find the value of the company. In addition to the valuation, you will be given a hypothetical project and have to decide whether to take the project if the opportunity is given to the company of your choice. Be doing this Capstone project, you will complete your understanding of valuation and financial analysis of startups.

Who is this class for: The target audience of this Specialization includes venture capitals, angel investors, and entrepreneurs, Particularly, entrepreneurs are wondering the value of their startups and how much ownership they need to give up to raise additional capital. It is same for angel investors. They are wondering how much ownership they need to ask in return for their investment.  Venture capitals may know the value of startups better than entrepreneurs or angel investors but they need to communicate with startups how they value startups. This Specialization helps angel investors, entrepreneurs, and venture capitals understand and communicate the value of startups.

Created by:   Yonsei University

Basic Info
EnglishSubtitles: Korean
How To PassPass all graded assignments to complete the course.
Introduction to Capstone Project
For Capstone Project, you are allowed to select a startup of your own choice. Then describe the company in detail such as business industry, competitors (or company) and service or product. 

2 videos4 readings
  1. Reading: Specialization RFP for Startup Valuation and Financial Analysis
  2. Video: Welcome Video
  3. Reading: Specialization Course Title
  4. Reading: Sample of Startups & Company Search Website
  5. Discussion Prompt: Company (or startup) selection
  6. Video: Describe Businesses and Markets of a Startup
  7. Reading: Lecture Slide
  8. Peer Review: Peer Review
Capstone Project I
For Capstone Project I, you will investigate historical performance of the startup that you select. You need to collect financial statements at least 3 years and need to make up numbers for the startup with reasonable assumptions. 

1 video1 reading
  1. Video: Describe Financial Projection of a Startup
  2. Reading: Lecture Slide
Graded: Capstone Project I
Capstone Project II
For Capstone Project II, you will calculate free cash flow of the startup. In order to estimate free cash flows, you need to make pro forma statements of the startup and estimate external financing needed. Also, calculate internal growth rate and sustainable growth rate.

1 video1 reading
  1. Video: Estimate Free Cash Flows of a Startup
  2. Reading: Lecture Slide
Graded: Capstone Project II
Capstone Project III
For Capstone Project III, you will find value of the startup using Multiple approach and Discount Cash Flow approach. In specific, you will apply multiple and DCF approach to find terminal value of the startup. After finding the value of a startup, consider the situation where startup finances external financing needed using new investment from venture capitalists.

1 video1 reading
  1. Video: Apply Multiple & DCF Approach to Find the Value of a Startup
  2. Reading: Lecture Slide
Graded: Capstone Project III
Capstone Project IV
For Capstone Project IV, you will think of an investment opportunity that your startup is likely to face in the near future and determine whether you would accept the investment using capital budgeting techniques. After estimating yearly cash flows of the project, apply three major capital budgeting techniques, NPV, IRR, and payback period, to determine whether you should accept the project.

1 video1 reading
  1. Video: Apply Capital Budgeting Criteria to a Project of a Startup
  2. Reading: Lecture Slide
Graded: Capstone Project IV
How It Works
Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.
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Yonsei University
Yonsei University was established in 1885 and is the oldest private university in Korea. Yonsei’s main campus is situated minutes away from the economic, political, and cultural centers of Seoul’s metropolitan downtown. Yonsei has 3,500 eminent faculty members who are conducting cutting-edge research across all academic disciplines. There are 18 graduate schools, 22 colleges and 133 subsidiary institutions hosting a selective pool of students from around the world. Yonsei is proud of its history and reputation as a leading institution of higher education and research in Asia.

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