Understand how much you need to retire comfortably

How I think about capital requirement

When I think about how much money I need on my bank account to live off the interest and not have to work anymore if I don’t want to, I usually ask myself

1 — How much $ I would need to spend per year to live happily

2 — How much % return I think I can achieve without taking too much risk of losing my investment (i.e. my capital)

When I think about the above, I have always used the assumption that I should not use the capital. And after discussing it with people from different generations …


Personal Finance and personal investing
Credit Anna Nekrashevich on Pexels

Exploring the diversity of investment options for retail investors.

As long as I remember, I have been curious about the investment world, professionally, but also on a personal level.

Now, investment is a big part of my job. Specifically, after graduating from one of the world top business schools with a specialty in Finance, I acquired a lot of on-field knowledge about investing in my 7 years working in Private Equity, Corporate Finance and M&A, and I am now an investment and M&A director at HoriZen Capital.

But while I was learning about investing, portfolio theory, black Scholes formula, Arbitrage, Venture Capital, LBO and all the complex investment and…


An easy but powerful analysis framework for VC, investment and business analysts

Photo by Marko Klaric from Pexels

VC & the finance of innovation — A must read


Pitch Deck Main Page

Wondering what structure to use to pitch your company to potential investors?

In this post, I will walk you through a pitch deck / information memorandum structure that, based on over 7 years of experience working in Private Equity and Merger & Acquisition, will provide investors with the key information they are expecting to see at this stage of their investment process.

If you’d like to read the full version with detailed explanations about each section, feel free to access directly the comprehensive article I have wrote on How to Write an Investor-Ready Startup Pitch Deck.

Part 1 — Introduction

1 — Summarized Overview of the Company


Understanding monthly churn rate and MRR ¦ Photo by Lukas from Pexels

Churn rate is a metrics so widely used in the SaaS market that it is easy to naturally think it is a well understood metrics.

Churn rate, defined for example as “the ratio of customers leaving a company over a certain period of time divided by total number of customers at the beginning of that period”, sounds like a straightforward and easy to calculate Key Performance Indication (or KPI).

However in reality understanding churn rate and driving useful insights can quickly become tricky. Worst, if misunderstood, it can lead to bad judgment and potentially wrong investment decisions!

There is much…


How to de-risk your investment decisions

Work out the risk before taking a leap

Introduction

In this article we detail 10 due diligence risks to look for before investing your capital in or acquiring a private business. Why? Because as an investor, it is fundamental to have a strong understanding of what you are buying into. In the private equity and start-up space, public information is not available, thus the capacity of advisors or investors to find clues indicating how strong a private business is during the financial due diligence phase is a crucial element in making educated investment decisions.

Equity investment in a specific industry or niche means you are likely to develop…


Look beyond simple churn rate to best understand your sales

Photo by Serpstat from Pexels

A quick reminder churn rate definition

If you are familiar with SaaS (Software as a Service) or subscription type business models, you know that churn rate (or retention rate) is one of the key KPIs you need to monitor correctly and try to improve. In short, churn rate corresponds to the number of customers you have lost, over the total number of customers that you have. For more ways to calculate churn you can refer to this Profitwell article.

If the definition is pretty straightforward, its application may be way trickier, and depending on the formula and numbers you decide…


From the elegance of valuation theory to the hard truth of reality

Photo by Lukas from Pexels

Valuation is an interesting and complex topic indeed. The theory behind modern valuation approaches is fascinating, hard to grasp, and even harder to apply to real life projects.

Everyone working in corporate finance, Merger & Acquisition or Private Equity Investment have heard of and understand at the very least the basics of the different valuation methodologies commonly used: Discounted Cash Flow analysis, Comparable Transactions, Industry average EBITDA or Revenue multiples.

However even if one was to master the theory, implementation of these techniques remains challenging. In a world of uncertainty, how to decide on what discount rate or WACC to…

Pierre-Alexandre HEURTEBIZE

Investment & M&A Director at HoriZen Capital. Creator of FDD course @ https://fddcourse.horizencapital.com/p/financial-due-diligence.

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