Valuations are a frequent topic of discussion for venture capitalists and founders alike, and are extra topical just now. We get Dave Foreman to draw on his experience to place them in context.
He starts off by outlining what’s happened in the past couple of years and where the market is now. He talks about what is or is not a reasonable valuation, with a particular focus on SaaS companies. Dave draws on examples to give us an idea of what he is seeing.
We then dig into how valuations fit into the investment process. We talk about founder expectations and to what extent they are realistic or not. Dave drills into how dilution of founders is also a key factor when looking at valuations. He also discusses to what extent as a manager you have to keep investing when valuations are high, and what he thinks of down rounds and market approaches to them.
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Dave Foreman, Managing Director and Founder of Praetura Ventures, has championed tech and health founders from the region and helped them grow exceptional businesses. Praetura Ventures is one of the only VCs headquartered in the North and the Praetura Ventures investment team reviews over 200 funding applications a month and £3bn worth of opportunities each year, deploying to just 15 to 20 select businesses per year. The Praetura EIS Growth Fund has now backed success stories such as BaniFi, Culture Shift, Patchwork, PEAK, Transreport and XR Games. Praetura prides itself on the ‘more than money’ approach, which helps its portfolio founders build the best businesses it can. This includes initiatives such as its Operational Partners programme, which matches founders with active mentors from dedicated industry heavyweights from companies such as Apple, Dr Martens, AO.com and Social Chain.
Disclaimer
Please note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.
