For Angel Investors

 

 

Humphries Scientific can help:

 

• Estimate Potential Future Earnings for early stage tech start-ups

• Estimate Level of Commercial Risk

• Estimate Current Development Risk

• Assess whether there is an acceptable risk vs return, in particular:

• Can risk be reduced at a fast enough rate so that the value of the company increases at a sufficient rate to achieve the Investor’s desired internal rate of return (IRR) which is usually in the range 30 to 50% pa.

• Are potential earnings at exit high enough to justify investment i.e. at time of proposed exit will the investor’s ownership share of the company be large enough (remembering it may have been diluted by other investors since the initial investment was made) to provide the necessary return? 

• The above analysis can be carried out for different estimates of earnings and time to market (i.e. how quickly risk will reduce) to help understand how sensitive the return is to the assumptions made in estimating risks and future earnings.