This case is designed as an introductory exercise to familiarize students with some of the methods used to evaluate early stage companies. The value of a young biotech company is compared by venture capital (VC), discounted cash flow (DCF), and the real version of the assessment methods. Students are asked to value the company in accordance with the VC and DCF methods and then compare these values to the value obtained in accordance with the real option method. It is assumed that the student table (UV4357) be assigned in advance of class with instructions that students appreciate a VC firm and DCF methods. A single sheet in the file (which can be hidden at the discretion of the teacher) provides a measure for debate purposes. Technical Note: "Valuing the company at an early stage» (UV1363), covering the basics of VC and DCF methods of assessment can be attributed to the case. "Hide
by Susan Chaplinsky Source: Darden School of Business 4 pages. Publication Date: March 4, 2009. Prod. #: UV1208-PDF-ENG
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