Case Study
Tearsheet and valuation support for the VC arm of a major telecom operator
About the Client
- The client is the venture capital arm of a major European telecom operator, based out of Silicon Valley
- The division aims to maximise the VC portfolio value within the Group
- It also aims to enhance the parent’s relationship with start-ups by identifying upcoming opportunities
Business Need
- The client’s Big Data team was scheduled to begin a roadshow with start-ups and wanted background intelligence on companies active in certain focus areas
- The project was split into three parts: identify relevant companies in areas of interest; prepare one-pager tearsheets on companies shortlisted; followed by valuation for a start-up that the client was interested in
Approach and Methodology
- Built an understanding of the Big Data analytics space, focusing on the areas of interest, such as data enablers, data service and applications, etc.
- Prepared a sample tearsheet and obtained client buy-in. Given the short turnaround time on the project, each tearsheet was completed in three hours on an average
- Finally, referred to a number of academic papers to finalise the valuation approach for the target tech start-up
- RocSearch added a detailed analysis of the approaches that were not considered for the valuation exercise to justify our choice of the final approach
Business Outcomes
- The information gathered helped the client in taking key strategic decisions
