On Thursday 4th June 2020 at 20.00 CET I am organizing the first #DisruptEuropeWebinar for only 100 people.
Our guest is Chris Droussiotis, from Kinisis Ventures and the title of the Webinar
VALUING “PRICELESS” – An overview of methodologies used to value IP and Start-ups.
A personal note from our guest.
I recently spoke to a scientist and inventor to help him commercialize his product. After he demonstrated his brilliant new product, I asked a very basic question: What do you think your invention is worth? “Priceless”, he said. I realized that I knew the answer before I asked it. It’s like asking what your newborn is worth.
I consider myself a numbers person. As a young analyst at Bank of America in the late 1980s, my colleagues called me Captain Crunch. I spent more than 30 years in banking analyzing investment opportunities, identifying the risks and valuing companies by building spreadsheets, many, many spreadsheets. I always knew that valuing a company or an investor’s equity is highly subjective. There is a lot of interpretation of the data used for the valuation methods. Although there are several methods to value a company, the valuation is both art and science. There is some judgement that goes in choosing the data. Naturally, the buyer has a different perspective than the seller and therefore the valuation assessment could be derived differently. I also learned that we can spend hours and days analyzing the value of the company but at the end of the day the value of anything is what someone is willing to pay.
After giving hundreds of lectures on how to value businesses – from their start-up phase to early development, to-going-public, to even valuing companies emerging out bankruptcy, I realized that not all valuations can be calculated accurately on spreadsheets. How do you explain the stratospheric stock prices for many technology companies that had negative income and cash flows for many years in their early stage of development but the stock, representing the value of these companies continued to grow (Amazon or Facebook)? Venmo, for example, a U.S. fintech company, raised $1.5 million in seed money, and incredibly in less than three years, PayPal bought Venmo for $800 million. As I have struggled with this question, one important lesson I learned is that a valuation that is not supported by a story is insensitive. People remember stories better than spreadsheets. My willingness to expand the traditional valuation methods and incorporate new metrics help me develop a model that combines the old valuation methodologies and storytelling.
How do you value a new idea? How do you value an intellectual property, a brand name, a franchise, a trademark or a new start-up? There is recent strong emphasis on intellectual property given that the highest growth of the U.S. economy comes from new technological platforms such as FinTech, CleanTech, HealthTech and EdTech. It’s no coincidence that the largest companies by market cap are technology companies such as Apple, Amazon, Google & Microsoft. All these companies started with convincing storytelling. A good story is simple, credible and persuasive. In writing this story the entrepreneur or the inventor needs to answer a few basic questions:
1. Who wants this and how big is the market?;
2. How much cost it will take to implement or convince someone to fund your vision; and
3. Can the story be converted to numbers and value?
If you are seeking to raise capital for your start-up company, or you're thinking of investing money into one, it's important to determine the company's worth. This seminar will give an overview of the methodologies used to value your company in various stage of development, a product or an intellectual property.
Reserve your spot via Zoom 👇😎
A few words about Chris Droussiotis
Chris Droussiotis’ training and expertise is in the area of Investment Banking. Possessing over 30 years of experience by working for numerous corporations in various executive management positions at Bank of America, Merill Lynch, CIBC Oppenheimer, Mizuho Financial Group, Bank of Tokyo-Mitsubishi Trust UFJ, Sumitomo Mitsui Banking Corporation,
Mitsui Nevitt Banking Corporation.
Chris is a former Managing Director, General Manager and the Head of the Leverage Finance, Private Equity Sponsor Group & Structured Finance Department at Sumitomo Mitsui Banking Corporation (SMBC) managing a loan portfolio of over $10 billion of large cap and middle market leveraged loans, as well as investments in SPV funds, CLOs and BDCs that are backed by leveraged loans and high yield bonds.
On April 2018, Chris left SMBC and join Kinisis Ventures Limited (KV), as a Senior Managing Partner. At KV, Chris is responsible with the financial analysis and valuation of start-ups.
Recently he obtained a certificate from Columbia University on Blockchain technology which will help KV expand its consulting services to adapt many of the blockchain applications in various industries including fintech, biotech, edtech and shipping.
Chris is also an adjunct Professor for the last 15 years teaching at various college and universities including:
Columbia University's School of Professional Studies – Enterprise Risk Management
Fordham University's Gabelli School of Business
Baruch College's Economics & Finance Department
Baruch College's Continuing and Professional Studies (CAPS)
Seton Hall University’s Stillman School of Management
Courses include Quantitative Analysis in Business, Investment Analysis, Managerial Finance, Commercial Credit $ Banking, Debt & Fixed Income Markets, Derivative Strategies, Business Statistics , Equity Valuation and Advanced New Venture Management.
In August of 2019, Chris has written his second textbook called “The Analytical Approach to Finance, Investments and Credit" Preliminary Edition – published by Cognella Academic Publications. Previously, co-authored a text book, “Mergers and Acquisitions - A Practitioner's Guide to Successful Deals” that was just published in March of 2019.
Professor Droussiotis has also given lectures on various subjects including Valuation of IP and Business Startups, Blockchain technology for Non-crypto Applications , Leveraged Buyouts, Credit Markets, CLOs, Private Equity, Loan Syndications, Capital Markets at Baruch College, Bank of China, Cendant Corporation, China Construction Bank, Wyndham Worldwide, Travelport and the Industrial Bank of Japan, etc.,
Chris is a member of various associations such as Hellenic American Bankers Association (HABA), U.S. Cyprus Chamber of Commerce and the Mathematical Association of America (MAA).
Check out the invite-only international startup networking conference DTalks 2020 and get an invite.