FinTech Series — Investing in Private Companies: Valuations and Deal Flow
The supply of publicly trading company stock is only half what it was in 1980. High growth companies are delaying going public and many choose to be acquired rather than listing on public exchanges. Therefore, the investing opportunity is with private companies in the growth stage. Under the Securities Act of 1933, the offer and sale of securities must be registered unless an exemption from registration is available. With Reg D, Reg A, Reg CrowdFunding, and Reg A+ investors can access private company investment without starting a venture or seed capital fund.
How does one go about valuing a private company in the growth stage? Making intelligent investments involves understanding risk and evaluating whether pricing is fair just as in public companies. Sourcing deal flow and evaluating investments include objective measures as well as artful decisions. Additionally, the offering of private securities is available through distinct channels. Private companies seeking capital pitch to audiences of potential investors; platforms list and offer companies seeking equity crowdfunding.
Our panel of two fintech investors plus a company founded by a CFALA member, that just completed a Series B fundraise, will highlight the opportunities in private investing plus how to find and evaluate deals.
Breakout room discussions follow for networking and attendee questions.
Cynthia Harrington, CFA | Cynthia Harrington, CFA is managing director of Sagespring Associates LLC, a behavioral and startup consulting firm. Harrington is a prolific writer and speaker in the field of behavioral technology, and a serial entrepreneur with successful companies in technology and investment management. She runs the MasterClass “Becoming Fundable” for the StartEd accelerator where she also is a mentor. Sagespring Associates develops proprietary measurement tools with niche populations in finance and entrepreneurship. She was previously an Insight Partner working with portfolio manager clients of the behavioral application Essentia Analytics, Ltd. and consultant on valuations for digital securities crowdfunding platform issuance, inc. Harrington founded and grew Team (You), Inc., a behavior management program for schools. She has published over 400 articles and two textbooks including the Corporate Finance text for the CFA Program; she was cited as one of the "fifty prominent authorities on performance measurement". She is a member of the CFA Institute, and a founding member of the Applied Behavioral Finance Group of CFA Society Los Angekes and the Global Advisory Council of 100 Women in Finance. Back To Top ^^
Kenneth (Ken) D. Denman | Mr. Denman was elected to the VMware board of directors in January 2021. Previously, Ken was President and CEO of Emotient, Inc. a provider of video-based automated facial expression measurement software technology, from 2012 until the company was acquired by Apple in 2016. Previously, Mr. Denman was the Chief Executive Officer of Openwave Systems, Inc. and iPass, Inc. and a Senior Vice President for MediaOne. Mr. Denman has been Visiting Professor at the University of Washington Foster School of Business – Edward V. Fritzky Endowed Chair since 2012 where he also serves on the Advisory Board. Mr. Denman is also a director of Motorola Solutions, Inc., Costco Wholesale Corp and VMware, Inc. Ken recently resigned from the board of directors of LendingClub, commensurate with LendingClub acquiring a bank charter through acquisition. Ken is Vice chair of the University of Washington Foundation board of directors and also a member of the Seattle Children’s Hospital board trustees. Back To Top ^^
Alex Rubalcava | Alex is the founder and managing partner of Stage Venture Partners, a firm established in 2015. Alex began his VC career as an analyst at Anthem Venture Partners in 2002. In 2021, a panel of local VCs named Alex one of the top VCs in Los Angeles.
Alex has served on the boards of numerous Stage VP companies, including Balto, NotiSphere, SoundCommerce, WhiteFox, SPIDR Tech, Abett, Gray Matter Robotics, and Dyania Health.
Alex is also a leader in the civic community of Los Angeles, with past service on three nonprofit boards: KIPP LA Schools, Thrive Scholars, and Los Angeles Animal Services.
Alex is a 2002 graduate of Harvard University. Back To Top ^^
Ksenia Yudina, CFA | Ksenia Yudina is a Founder and CEO of UNest, the first mobile app that makes it easier than ever before to create a manage tax-free college savings accounts. Ksenia is an entrepreneur and financial expert with over ten years of experience in the financial industry. As Founder and CEO of UNest she has spearheaded the development of the breakthrough fintech solution and raised funding from leading venture capital funds including Northwestern Mutual, Anthos Capital, The Artemis Fund, Group 11, Draper Dragon, Unlock Ventures, and Vested Ventures. Ksenia was a 2019 Finalist in Quesnays Female Founders in Fintech competition. She has also been featured in The Wall Street Journal, TechCrunch, New York Times, Forbes, Business Insider, American Banker, Inc. Magazine, USA Today, and US News & World Report. Ksenia was recognized as 40 Under 40 by Investment News and received a Rising Star Award from the Los Angeles Business Journal. Back To Top ^^
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Cynthia Harrington, CFA
Karyn Williams, PhD
|As a participant in the CFA Institute Approved-Provider Program, the CFA Society of Los Angeles has determined that this program qualifies for 1 credit hour. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary.|