New financial model to estimate the fair value of venture capital-backed companies and of each type of security these companies issue was developed. When applied to venture capital-backed private companies results indicate that their post-money valuations are substantially above fair values for many unicorns because of the preferential contractual terms these unicorns gave to their most recent investors. The common shares in such cases are even more overvalued than the company itself.
The blockchain, entrepreneurial and investment community are passionately discussing the SEC's report on the investigation of the token sale determined to be in violation of the U.S. securities laws. Although, everybody felt that this is a milestone for the developing blockchain sector, a very few people actually read the entire report and understood what this is all about. Because the press-release along with the report itself (see below) is a typical TLDR, we summarize here everything you need to know from them to stop the panic.
There is no price list on IPO. Total expenses vary from one company to another and depend on multiple variables. It's also hard to rely on market data, because only a portion of the costs incurred as part of the IPO are disclosed publicly. However, a thorough understanding of such costs can help better estimate the total outlay. PWC identifies several types of IPO costs not only for going public, but also for being public.
New Chairman of the Security and Exchange Commission (SEC), Walter J. Clayton, wants to encourage more companies to go public allowing them to file registration statements confidentially. How will it affect the market?
Exclusive advice to our subscribers is coming from Greenberg, Whitcombe, Takeuchi, Gibson & Grayver, LLP this week. The partners of the firm Michael J. Weinberger, Leonard Grayver, as well as its litigation associate Dimitry Lensky prepared a thorough advice on potential conflicts between investor and its portfolio companies, since the tech industry has seen several lately: Zenefits, Fisker, Theranos and other companies are all in a process of litigation.
One of the hottest topics on today's agenda of the investment community is conflicts of interest. Not only will Donald Trump have more potential business and financial conflicts of interest than any other president in U.S. history, once he starts work in the Oval Office, but there are also a couple of deals at risk because of this issue.