Mon, Jan 27, 2020

Srividya Gopal Talks about Valuations for Unicorns

Srividya Gopal, Managing Director and Southeast Asia Leader in the Valuation Advisory Services practice, was recently quoted in Singapore Venture Capitalist and Private Equity Association’s quarterly newsletter.
In the article titled, “Reining in The Unicorns,” which discusses valuations for startups that go public, Srividya talks about how valuations are derived for unicorns, especially after a late-stage round, and why established listed businesses are valued under these unicorns.
“Considering that the investments in unicorns typically come from private capital sources, their valuation is driven by growth in both non-financial and financial parameters. While a key consideration for the investor is the potential exit price, they also give importance to other rights and preferences in their entry price. Typically, these rights on not available to common shareholders in the same company and hence there could be a significant value difference between different classes of shareholders and even different series of investors,” commented Srividya. She added, “Public investors place a higher weight on profitability and dividend paying capacity, while a private investor in a unicorn will place a significant weight on growth”.

Read the article here.

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