Traditional financial metrics are great, if they can be applied.
The problem with applying traditional financial metrics–such as return-on-assets, net profit margins and price-to-earnings ratios–to emerging companies is that they have no earnings (quite often, no revenues either) to be factored into such ratios. Emerging company analysts live in a world without historical performance and comparables. It is an opaque world as the subject companies are typically not required to disclose any information. It is a solitary world as the emerging company analyst is often the only investor taking a serious look at the subject company.
The path to discovering the most promising early-stage companies is littered with broken business models, ill-timed commercialization strategies, severe underestimation of competition and hallucinatory managerial expectations. To overcome these challenges, the emerging company analyst must be able to assess management, scrutinize business models, size addressable markets, gauge competitive environments, determine the potential of technologies, and understand how capital structure will impact shareholder returns.
Whether you are interested in investing in angel- or venture-backed companies; micro- to small-cap public companies; firms traded on secondary markets; or, businesses raising capital through crowdfunding, this course is designed to provide you with actionable analytical skills.