They crowned Miss Universe®
last night. Dayana Mendoza, Miss Venezuela, beat out
79 other contestants to bring home the crown. Our planet should be proud. She
is the 57th earthling in a row to win the coveted honor as the most
beautiful woman in the Universe. This is no small achievement when you consider
that the Universe is defined as everything
that physically
exists: the
entirety of space
and time, all forms
of matter, energy and momentum, and
the physical
laws and constants that govern them. Pretty heady stuff
for a 22 year old who, before last night, only wanted to be an interior
designer.
For serious VCs, beauty contests conjure up thoughts of John Maynard
Keynes and venture valuations. The Keynesian beauty contest is his economic theory that a stock pick is
not based on fundamental value but on what investors think everybody else would
pick. Beauty isn’t in the eye of the beholder. It’s in the average eyesight of
many beholders. It’s no wonder Miss Venezuela was in tears when she won the
crown.
Fundability's Beauty Contest
When it comes to early stage valuations, VCs are trying to
figure out what the company will be worth in the eye of the ultimate
buyer. That’s why they start at the end
– the exit. There are benchmarks and market factors but early stage companies
have few fundamentals to throw into a calculation. On the flip side, company
founders lack the valuation experience or perspective of VCs who can spout
pre-money/post-money numbers like batting averages and RBIs. It’s scary when you consider that a 5% swing
in valuation can be worth millions in a future liquidity event! At Fundability, we decided it would be, well,
valuable, to provide early stage companies with access to a professional equity
valuation. We have partnered with Paschall
Capital, a professional business valuation expert and investment banker, to
offer Certified Equity
Value Calculation Reports for $795.
To launch the new service we have created our own beauty contest: Fundability’s What It’s Worth
Contest.
The winner will receive a full Equity
Value Calculation Report prepared by Paschall Capital in compliance with the
latest and most comprehensive professional Statement on Standards for Valuation
Services. Entries will be accepted until
August 15th. You can save
your tears of joy for when you get funded because this is really not a beauty
contest. The winner will be randomly
selected on August 20th plus we nixed the swimsuit competition. So,
get your entry in and find out What It’s Worth.