Dive into innovation knowledge and investment trends

Secondary Market Process in Private Equity

Portfolio Monitoring

Private Equity Secondaries: Principles, Benefits, and Trends

VC and PE Guide

Equity Management

Portfolio Monitoring

Corporate Venture

News from ScaleX

Secondary Market Process in Private Equity

Portfolio Monitoring

Private Equity Secondaries: Principles, Benefits, and Trends

VC and PE Guide

Navigating Private Equity Fees: Carried Interest and Management Fees Explained

News from ScaleX

Introducing ScaleX Invest’s Convertible Debt Valuation Module: Simplify Complex Analyses

VC and PE Guide

Open-Ended vs. Closed-Ended Funds: Principles, Differences, and Impact on Private Equity

Fundraising

Convertible Debt: Mechanisms and Advantages

VC and PE Guide

Technology Investment: Distinguishing Venture Capital from Growth Equity

Dynamic fair value assessment powered by ScaleX Invest, ensuring compliance with IPEV standards and fostering trust through accurate market-aligned valuations.

Portfolio Monitoring

IPEV: A Comprehensive Guide for Venture Capital and Growth Equity

ScaleX Invest offering seven valuation models, including DCF, VC method, and revenue multiples, for comprehensive tech company portfolio analysis.

Valuation

Everything You Need to Know About ScaleX Invest's Valuation Methods

ScaleX Invest’s “European Tech IPO Barometer” highlights key trends in post-IPO performance, showcasing mature tech hubs, underwriter dynamics, and high-performing sectors like AI and CleanTech.

News from ScaleX

Unlocking the Potential of European Tech IPOs: Key Takeaways from ScaleX Invest's Latest White Paper

ScaleX Invest bridges the gap between Venture Capital and Private Equity, offering tailored valuation models like DCF, revenue multiples, and listed peers for precise investment strategies.

VC and PE Guide

Venture Capital vs. Private Equity: Understanding Key Differences

Portfolio Monitoring

Understanding Waterfall Mechanisms in Venture Capital: Impact on GPs’ Returns

ScaleX Invest reduces startup bankruptcy risks in the French tech ecosystem, leveraging advanced scoring algorithms to identify high-potential companies and ensure portfolio resilience.

News from ScaleX

Understanding Post-Series A Bankruptcies in the French Tech Ecosystem

News from ScaleX

ScaleX Invest’s new portfolio feature: a comprehensive solution for funds and LPs

General Partners (GPs) and Limited Partners (LPs) rely on performance indicators (KPIs) to assess the viability and success of their investments. These KPIs offer a quantitative measure of investment performance, thus enabling better decision-making processes. ScaleX Invest, through its SaaS solutions, provides investors with valuation methods adapted to technology companies, including multiples, to effectively track their portfolios. Here is an overview of the KPIs tracked by GPs and LPs.Internal Rate of Return (IRR)Gross IRRGross IRR is a crucial indicator for GPs as it measures their gross investment capacity by calculating the rate of return on invested capital before taking fees, expenses, and commissions into account. This indicator reflects the GP's ability to generate returns from the invested capital, providing a clear picture of investment performance. However, this indicator can be misleading if compared between funds or investments without considering differences in fee structures, as it does not account for incurred costs, which can significantly impact net returns for LPs.Net IRRNet IRR, on the other hand, is essential for LPs as it takes all fees and expenses into account, reflecting the actual return on the capital invested by LPs. This indicator is fundamental at the fund level as it provides a realistic view of the returns that LPs can expect after all costs are deducted. However, it can vary considerably depending on the provisions for commissions, fees, and expenses. Moreover, it is less informative at the beginning of a fund's lifecycle due to the J-curve effect, where investments may show negative returns.Multiple on Invested Capital (MOIC)MOIC is a key multiple for assessing a GP's performance. It measures the total value generated from the invested capital, highlighting the fund's ability to choose profitable investments. A clear advantage of MOIC is its ability to provide a simple indication of overall return without the distortion of time. However, it can be less informative about the efficiency of capital use over time, as it does not take investment duration into account. Additionally, MOIC can be divided into realised and unrealised MOIC. Realised MOIC measures the returns from liquidated investments, while unrealised MOIC evaluates the current value of active investments. Together, they offer a complete view of past performance and potential future gains.Total Value to Paid-In Capital (TVPI)TVPI is a critical indicator that measures the total value created relative to the capital paid in by LPs, thus offering an indication of the fund's ability to maximise returns. TVPI's strength lies in its ability to reflect both realised and potential future returns, making it a comprehensive measure of a fund's performance. However, TVPI can sometimes be inflated by unrealised gains that may not materialise. As with MOIC, the duration of investments is not considered, which constitutes a limitation.Residual Value to Paid-In Capital (RVPI)RVPI measures the theoretical value of active investments in the fund. This indicator is important at the beginning of the fund's lifecycle as it provides an estimate of future returns. However, it must be considered with caution as it accounts for unrealised value. Excessive reliance on RVPI can lead to an overestimation of a fund's performance.Distributions to Paid-In Capital (DPI)DPI measures the capital actually returned to LPs compared to the capital paid in. This indicator is crucial at the end of the fund's lifecycle as it reflects the realised value of investments. DPI is advantageous as it provides a direct measure of cash returns for LPs and is essential for evaluating the success of exits and the overall performance of the fund. However, focusing solely on DPI neglects the potential value of active investments (RVPI).Net Asset Value (NAV)This indicator is essential for GPs and LPs to assess the health and value of the portfolio. The main advantage of NAV is that it provides an instant snapshot of the current value of the portfolio, which is crucial for monitoring and comparing with other investment opportunities. Like RVPI, NAV can be influenced by the subjective valuation of unrealised investments.ProceedsProceeds refer to the distributions from the total or partial liquidation of investments. This indicator is crucial for assessing the returns generated by investments. Proceeds offer a direct measure of the success of exits.ConclusionFor technology investors, tracking these KPIs is crucial for making informed decisions and optimising investment strategies. ScaleX Invest's solutions allow investors to have accurate and relevant data, enabling them to assess opportunities and effectively value their portfolios. By leveraging these KPIs, GPs and LPs can maximise the return on their investments.ScaleX Invest provides a solid analytical framework for technology investors, ensuring that they have the necessary tools and insights to navigate a particularly dynamic ecosystem.

Portfolio Monitoring

Performance Indicators Tracked by GPs and LPs

ScaleX combines the peers multiple method with advanced analytics, enabling investors to benchmark valuations effectively while mitigating risks like market mispricing.

Valuation

Pros and cons of the peers multiple method to value Tech Companies

Analyzing the pros and cons of the Discounted Cash Flow (DCF) method in valuing tech companies, highlighting its comprehensive financial analysis and limitations for early-stage startups.

Valuation

Pros and Cons of the DCF Method to Value Tech Companies

ScaleX introducing the Waterfall Valuation Model, enabling tech investors to account for liquidation preferences and achieve precise portfolio valuations.

Portfolio Monitoring

Introducing ScaleX’s new Waterfall model: a Game-Changer for Tech Investors

ScaleX Invest empowers private equity investors with robust valuation tools, aligning with IPEV Guidelines and European regulatory standards for transparency and accuracy.

Portfolio Monitoring

Ensuring Independence: Valuation Guidance in European Private Equity

ScaleX exploring the integration of AI in investment management, focusing on compliance, portfolio optimization, and enhancing customer service with advanced tools.

VC and PE Guide

AI for Advisory: a friend more than a foe

Portfolio Monitoring

How can CVCs track and show the value of their portfolio?

VC and PE Guide

Unveiling the difference between LPs and GPs in finance

Portfolio Monitoring

Understanding NAV financing

Fundraising

What Venture Loan debt costs

Valuation

What you should know about early-stage startup valuation

VC and PE Guide

Infographics: optimising the e-commerce conversion funnel

VC and PE Guide

E-commerce success: 10 KPIs that matter

VC and PE Guide

10 KPIs you need to track regarding SaaS

VC and PE Guide

Stock exchange: the difference between IPO and Direct Listing

Equity Management

Incentive compensation: how to build loyalty, retain and reward employees

Fundraising

Startup funding: key alternatives to VC money

VC and PE Guide

Decoding SaaS KPIs: read our infographic

Fundraising

Keys to a well-designed executive summary

ScaleX leveraging SaaS and PaaS models to provide bankers with advanced tools for investment management, risk analysis, and operational efficiency.

VC and PE Guide

Decoding tech jargon: PaaS, SaaS and IaaS

ScaleX empowers investors with its ESG module, supporting compliance with SFDR requirements and enabling transparent, data-driven portfolio management.

Sustainability

Reading the SFDR Article 8 and 9 categorisations

ScaleX advancing startup valuation research through its partnership with Audencia’s ‘Finance for Innovation’ Chair, analyzing the impact of macroeconomic factors and business cycles.

News from ScaleX

R&D partnership between ScaleX and Audencia's "Finance for Innovation" chair

Sustainability

ESG Score: promoting sustainable growth and social impact

Sustainability

Unlocking success: Extra-financial criteria in company assessment

Corporate Venture

Working with a startup: should you buy, co-develop or invest?

Sustainability

Where do startups fit in a corporate ESG strategy?

Fundraising

What's the difference between a pre-seed and seed funding round?

Fundraising

Banks and startups: an ever evolving relationship

Corporate Venture

10 reasons why you should work with startups

VC and PE Guide

Infographic - Top trends in the circular economy

News from ScaleX

Early Metrics becomes ScaleX, data-driven software

Sustainability

Measuring environmental and social impact with ESG scoring

Sustainability

Infographic – Key trends in sustainable finance

Early Metrics partners with Euronext to provide automated analytical reports, enhancing investor insights into 430 listed Tech SMEs across Europe.

News from ScaleX

Euronext and Early Metrics join forces to support Tech SME investors

Corporate Venture

How can procurement teams assess and mitigate the risks of engaging with startups

Fundraising

How can banks improve their relationship with small businesses

Equity Management

Founder and CEO: two distinct roles in a startup

Valuation

DCF or VC, which is the best startup valuation method?

VC and PE Guide

What’s the difference between a startup, a scale-up, and a tech company?

Fundraising

Startup loans: how can banks deal with their high credit risk?

Fundraising

ScaleX: helping banks better collaborate with startups

Corporate Venture

How startups and researchers can partner to foster innovation

News from ScaleX

Euronext launches the Tech Leaders segment in partnership with Early Metrics

Fundraising

Entrepreneurs: 6 things to know before talking to a bank

Sustainability

Earth Day: 10 emerging startups fighting climate change in Europe

Sustainability

Climate Tech: 8 innovative trends to make finance more sustainable

Corporate Venture

Corporate Venture Capital: top solutions for common pain points

Corporate Venture

5 reasons why open innovation teams use startup scoring

Fundraising

A new AI-led approach to credit risk and retailer financing

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