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Overview

With early stage companies accounting for a large part of the aggregate PE/VC funding in India, it is imperative to understand the choice of instruments these companies use and also to be able to value these instruments appropriately.

This webinar will focus on understanding the key terms of the convertible preference shares (CPS) that VCs use. The session will also demonstrate the use of an option pricing approach to better understand the valuation of early stage companies.

Learning outcomes:

  1. Why do VCs invest through CPS in early stage companies?
  2. What are the special rights attached to CPS?
  3. How does one value these instruments?
  4. What happens in down cycles to the various rounds of CPS—do they decline in value proportionately?
  5. How does one use option pricing for the valuation of such instruments?

Note: Members, please go through the following refresher reading on private equity valuation. This webinar contains some content on best practices applicable to Indian markets.

Private Equity Valuation

This is the archived version of a live webinar that took place on 18 June 2020

About the Speaker(s)

Navin Vohra Picture
Navin Vohra CFA

Navin Vohra, CFA, heads the Valuations, Modelling and Economics practice of Ernst & Young India. He has 25 years of experience in valuations and equity analysis.

Shreenivas Kunte
Shreenivas Kunte CFA, CIPM

Shreenivas Kunte, CFA, CIPM, is a director of professional learning and advocacy at CFA Institute. In this role, Mr. Kunte contributes to thought leadership in the investment profession. He writes on investing topics in leading publications and represents CFA Institute at conferences and forums. Mr. Kunte serves as an external research scholar at the Indian Institute of Technology Bombay. Previously, he worked as the country trading strategist for Citi in Tokyo, Japan. He holds a degree in computer engineering from the University of Mumbai.