How can you use industry reports to inform your valuation decisions?

Los informes de la industria pueden ayudarnos a obtener información de la cual no estamos conscientes. Personalmente, recomiendo estar siempre al pendiente de cualquier informe que tenga relevancia en la industria; ya sea por las nuevas tendencias, nuevos competidores, leyes o el valor de mercado. Adicionalmente, sugiero revisar los informes trimestrales de las empresas más relevantes de la industria. Las empresas que cotizan en la bolsa tienen la obligación de compartir públicamente sus estados financieros. Aquí puedes encontrar información tan relevante como las inversiones que están realizando y el resultado de sus estrategias.

Industry reports are particularly helpful when you're doing due diligence on a new technology or highly- specialized sector such as biotech or medical tech as they can break down key concepts and problems

Industry reports play a crucial role in informing valuation decisions in venture capital. They provide valuable insights into market trends, competitive landscapes, and potential risks and opportunities.

Using industry reports to inform valuation decisions involves a thorough analysis of market trends, competitor performance, and emerging technologies. These reports offer valuable insights into market size, growth trajectories, and sector-specific dynamics, which are crucial for assessing a startup's potential and scalability. By understanding the industry landscape, you can better gauge a company's position and future prospects, leading to more informed and realistic valuations. Additionally, industry reports highlight risks and opportunities, enabling a more comprehensive and nuanced approach to valuation. Essentially, they provide a data-driven foundation for making investment decisions in the ever-evolving startup ecosystem.

Existe una gran variedad de lugares donde puedes consultar informes industriales; mi favorito es FACTSET, ya que ofrece un análisis comprensivo de sectores bien identificados, mostrando los crecimientos trimestrales e incluso haciendo referencia a los principales actores de cada uno. También es recomendable estar al pendiente de sitios de noticias como CNBC, Bloomberg, El Financiero, El Economista y cualquier otro medio confiable que pueda ofrecer noticias relevantes sobre economía, sectores y finanzas.

Do not underestimate the content shared on Twitter or LinkedIn! A lot of industry experts are publishing resources and new information weekly. Podcasts are also a great way to learn about a specific industry

Finding industry reports involves accessing reputable sources that provide comprehensive and up-to-date information on specific sectors or markets. Many industry associations and organizations publish regular reports on market trends, statistics, and insights. Companies specializing in market research often produce detailed industry reports. Examples include Nielsen, Gartner, Forrester Research, and IBISWorld. Government agencies often publish industry-related statistics and reports. Leading business news outlets and magazines may publish industry analyses and reports. Management consulting firms often release industry reports and white papers. Deloitte, McKinsey & Company, and Boston Consulting Group (BCG) are firms may share insights.

Make sure to talk to industry key players and stakeholders to validate the information you've gathered and check your understanding of a particular industry

Un gran lugar para empezar a utilizar la información que tenemos a la mano es mediante el método de comparación. ¿Qué tan bien estoy logrando mis resultados? ¿Invierto lo suficiente en Desarrollo e Investigación? ¿Gasto demasiado dinero? Las comparaciones entre el promedio del mercado, tomando en cuenta a los principales representantes del sector, y la empresa propia, pueden ayudarnos a entender mejor nuestra posición. Los análisis se interpretan mejor con frases como: * Gastamos más que la media del mercado. * Nuestra nómina es menor en porcentaje que la de los competidores. * Nuestro costo de adquisición, comparado con el mercado, es bajo.

There's a critical factor to consider, and that's the timeliness of industry reports. Ask yourself a question: who produces and publishes these reports? In fact, a lot of them come from sell-side firms. As an early-stage investor, when you find yourself relying on industry reports from sell-side institutions to assist with your valuations, it might be time to reassess whether investing in this industry is still at the "early stage" for you. So as an early-stage investor, you should be the one to write but read industry reports. And the only reason you want to write reports is to sell your already built-up portfolios to next rounds. 😄

Its important to always combine the publicly available information available on trends/M&A activity etc obtained through industry reports with your own investment team's findings which are more focused on in-depth founding team analysis, competitive advantages, client interviews etc.

Improving your valuation skills involves a combination of education, practical experience, and continuous learning. Consider obtaining relevant certifications, such as the Chartered Financial Analyst (CFA) or the Certified Valuation Analyst (CVA). Maintain a strong ethical foundation in your valuation work. Objectivity and integrity are crucial in the valuation profession.

Investment Simulations : Participate in role-playing or investment simulations to practice valuation in a controlled setting. This helps you learn to navigate various investment scenarios effectively. Real Case Studies : Analyze real investment cases, both successful and failed, to understand practical valuation dynamics. This approach offers insights into real-world investment challenges and solutions. Study/Discussion Groups : Create a group with other professionals to discuss and analyze valuation trends and strategies. This collaborative learning enhances your understanding of diverse valuation methods.

Observing Funding Dynamics : Examine how financing cycles evolve in the sector to adjust your investment strategy. Anticipating Regulatory Changes : Reports can provide information on regulatory trends that could affect company valuations. Analyzing Demographic and Consumption Data : Use the reports to understand changes in consumer behavior that could impact the demand for certain products or services.

I don’t trust on such reports and I do think that they are for advertising or conference purposes. Somehow, advertising should not be in reports, but on client’s assessment.