1 hr
92 The state of valuations in the current market and what they mean for investors with John Glencross of Calculus The EIS Navigator
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- Investing
Valuations are always a popular topic. With much discussion about whether we are at the bottom of the current cycle, it seems a good time to revisit and we invited back someone who has experienced several market cycles: John Glencross, co-founder of Calculus Capital.
We had a great discussion on how the current market, how this compares with recent times and how a fund manager handles them. Topics discussed include:
how companies are accepting lower valuationsthe danger of growth at any pricewhere there are still bubbles and what the consequences of these might behow to manage investing when valuations are highthe psychology of down rounds preferential return structures and what John is seeing in the marketreal unicorns versus valuation aberrationshow valuation matters for investinghow Calculus values existing portfolioJohn's sense of valuations in the EIS & VCT market and where he thinks the discrepancies arehow close we are to the bottom of the valuation cycle
Talking with someone who has seen several downturns gave a great perspective on all these topics and there's lots for all advisers and investors. Enjoy!
01:00 John introduces himself
04:30 recent exit patterns
06:00 companies accepting lower valuations attraction of investment vs exits
07:30 avoiding growth at any price - US vs UK
10:15 where there is still bubbles
13:15 investing when valuations are high - changed pace of investments in recent years
16:45 the psychology of down rounds
18:45 preferential return structures and the general tightening of terms in market
26:00 when are unicorns a market aberration?
28:30 how valuation matters for investing
31:10 portfolio valuation - lags, being realistic and getting a good process
35:00 how EIS managers are using unrealised performance as marketing, but its not similar to exits
41:00 what is an acceptable band of uncertainty? How exits matter
44:15 are we at the bottom of the valuation cycle?
48:45 favourite questions
Links
Calculus Capital website: https://www.calculuscapital.com/
Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen
Suggested books and media
Sunshine & Shadows
The Four Agreements by Don Miguel Ruiz
Sing as We Go by Simon Heffer
Bio
John Glencross
Chief Executive and Cofounder, Calculus Capital
John co-founded Calculus with Susan McDonald in 1999, creating one of the UK’s most successful,...
Valuations are always a popular topic. With much discussion about whether we are at the bottom of the current cycle, it seems a good time to revisit and we invited back someone who has experienced several market cycles: John Glencross, co-founder of Calculus Capital.
We had a great discussion on how the current market, how this compares with recent times and how a fund manager handles them. Topics discussed include:
how companies are accepting lower valuationsthe danger of growth at any pricewhere there are still bubbles and what the consequences of these might behow to manage investing when valuations are highthe psychology of down rounds preferential return structures and what John is seeing in the marketreal unicorns versus valuation aberrationshow valuation matters for investinghow Calculus values existing portfolioJohn's sense of valuations in the EIS & VCT market and where he thinks the discrepancies arehow close we are to the bottom of the valuation cycle
Talking with someone who has seen several downturns gave a great perspective on all these topics and there's lots for all advisers and investors. Enjoy!
01:00 John introduces himself
04:30 recent exit patterns
06:00 companies accepting lower valuations attraction of investment vs exits
07:30 avoiding growth at any price - US vs UK
10:15 where there is still bubbles
13:15 investing when valuations are high - changed pace of investments in recent years
16:45 the psychology of down rounds
18:45 preferential return structures and the general tightening of terms in market
26:00 when are unicorns a market aberration?
28:30 how valuation matters for investing
31:10 portfolio valuation - lags, being realistic and getting a good process
35:00 how EIS managers are using unrealised performance as marketing, but its not similar to exits
41:00 what is an acceptable band of uncertainty? How exits matter
44:15 are we at the bottom of the valuation cycle?
48:45 favourite questions
Links
Calculus Capital website: https://www.calculuscapital.com/
Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen
Suggested books and media
Sunshine & Shadows
The Four Agreements by Don Miguel Ruiz
Sing as We Go by Simon Heffer
Bio
John Glencross
Chief Executive and Cofounder, Calculus Capital
John co-founded Calculus with Susan McDonald in 1999, creating one of the UK’s most successful,...
1 hr