Entries Written By Stephen Canis
Book Review – Zero to One by Peter Thiel
I recommend reading Zero to One. The concepts introduced throughout the book are thought provoking and often counterintuitive. You’ll likely find yourself disagreeing with some points and thinking deeply about his ideas. It’s clear that Peter Thiel has thought a lot about innovation and creating a successful company. Below I’ve outlined some key ideas from the …
TextClues Redesign
I’m proud to announce that after months of hard work the new design for TextClues.com is live! We hope that the changes will improve usability and make the website easier on the eyes. Check it out and let me know what you think! We focused on upgrading the following aspects of our design: Mobile Responsiveness – …
What I learned from buying Minecraft
Minecraft, in my mind, is one of the most successful startups in all time. Bootstraped by one developer in Sweden (@Notch) the company never needed to raise capital, earned revenue of over $400 Million dollars and had a $2.5 Billion exit. All within 5 years. Minecraft was a runaway success because it was and is …
Book Review – Startup Playbook by Sam Altman
This is the best place to start if you want to know what makes a successful startup. It’s simple and to the point. Check it out for free here. Written by the president of Y Combinator the simplicity should be taken as a sign of great value. In one sitting you can find out what …
Capitalized Cash Flow Valuation Method
The capitalized cash flow valuation method is a great way to value an established company which is expected to have a consistent growth rate going forward. Clearly this valuation technique isn’t well suited to the many startups with negative cash flows and hopes of exceptional growth in the future. However, it’s a good place to start …
Weighted Average Cost of Capital
The Weighted Average Cost of Capital (WACC) of a company represents the cost of acquiring additional capital based on the current capital structure. It is essentially the rate of return the business is expected to generate for it’s investors going forward. The WACC can therefore be used to discount future expected earnings in order to …
What is the Cost of Equity?
The cost of equity is the return an investor expects to earn by virtue of holding shares of a company. It is closely related to the risk profile of the company because an investor will expect high returns when holding a risky asset and low returns when holding a relatively safe asset. The capitalized asset …
Determine the Sustainable Growth Rate
The rate you expect discretionary cash flows to increase year over year is known as the growth rate. In particular, the growth in cash flows which is expected to continue forever is called the sustainable growth rate. In the context of valuing a startup we would generally have at least two phases of growth. A …
Discretionary Cash Flow – The Value Driver
Discretionary cash flow is an important metric used for valuing companies. It represents the cash generated after paying all costs required to maintain the company’s current cash flows. It is essentially the cash which management is free to spend as they see fit. Calculation: DCF = OCF – Cn DCF – Discretionary Cash Flow …
Welcome to Claim Your Capital!
This website is a place for me to share my ideas and insights on entrepreneurship and the world. Have a look around and I hope you can find something interesting! If not, more will be coming soon!
