Funding: Creating Values vs. Creating Valuations – Are Investors Now Investigating on Values Rather Than Valuation ?

Trinity: Taj Vivanta

Investors appear to be seeking companies with credible strategies for value-creating growth. They are increasingly interested in companies that have experienced management teams and clarity of business strategy based on strong fundamentals and intelligent capital allocation. However, TSR (Total Shareholder Return) drivers also remain popular choices with investors looking for undervalued, three-to-five-year revenue growth and free cash flow yielding companies. So today, comprehending the mindset of investors becomes imperative to one’s chances of getting funded.

Key Discussion Pointers:

  • How investors decide upon funding when caught between a startup’s values and its valuation
  • Do higher levels of bearishness among investors indicate expectations for lower TSR
  • Creating value in business that bridges the difference between your current valuation and your desired valuation