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The right valuation is counterintuitive because it does not necessarily mean the highest dollar value and the smallest equity percentage for the new A investors.
For a new start-up, what would be an acceptable equity percentage given to a VC, let's say for a series A fundraising?
No equity percentage was given for either round so it's not possible to extrapolate the valuation DealDey may have put forward for the Ringier Africa acquisition.
Federal regulations require that you have at least half of the cost of the stock you're purchasing in your account, and that your equity percentage is no less than a quarter of your total investments.
Similar(54)
All those equity percentages that banks brag about are ratios of capital to "risk-weighted assets," not overall assets.
"FYI, there is no additional equity or percentage of anything taken any longer.
Many companies have capital ratios -- equity as a percentage of assets -- of 6 to 7percentt.
One approach, which involves no risk-weighting, measures common equity as a percentage of total assets after subtracting goodwill and intangibles from both totals.
So investors have been overestimating the expected return from stocks: It should be no higher than their underlying companies' returns on equity, or three percentage points a year less than the equity market's annual return over the past 50 years.
Michael Sonnenfeldt, who became wealthy in real estate before starting Tiger 21, said a poll of the group's 192 members after the second quarter found that, on average, they had increased their allocation to private equity by four percentage points.
A Political Memo article on Thursday about the risks of President Obama's attacks on Mitt Romney's career in private equity misstated the percentage of campaign donations given by securities and investment firms that have gone to Republicans so far in the 2012 election cycle.
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