Online grocery delivery startup Instacart achieved a valuation of $4.2 billion in February 2018 after raising $200 million in funding—up from $3.4 billion the previous year. But how realistic is this figure? By working backward and breaking down the business model’s economics and revenue projections, we can analyze whether this valuation holds up under scrutiny. … Read more
Traditionally associated with pensions and insurance, actuaries are now expanding their domain, bringing statistical expertise to an ever-wider range of industries. Their proficiency in assessing long-term financial risks and opportunities makes actuarial science particularly valuable for businesses with recurring revenue models, such as SaaS companies or subscription-based services. This article examines how the actuarial valuation … Read more
The 2017 tax reform bill introduced sweeping changes to the corporate tax landscape, most notably reducing the corporate marginal tax rate from 35% to 21% and altering the treatment of interest expense as a tax shield. These changes have created both opportunities and unique challenges for corporate managers and finance professionals, shifting both tax planning … Read more
Latin America offers enticing investment opportunities with attractive risk-adjusted returns, fast-growing markets, and access to a substantial population base with rising incomes. Today, foreign investors see the region not as a market of last resort but as an exciting, high-growth opportunity fueled by urbanization, digital transformation, and consumer expansion. Historically, Latin America’s returns have even … Read more
In a landscape of subdued oil prices and forecasts predicting plateauing consumption within the next 30 years, oil and gas companies are under pressure to maintain profitability by controlling costs. The road ahead prioritizes efficiency, speed, and innovation. By leveraging advanced technologies like blockchain, wearables, predictive analytics, and 3D printing, companies can transform their supply … Read more
Professional sports franchises continue to command record-breaking sale prices. How can a team like the Dallas Cowboys, which hasn’t won a Super Bowl in over two decades, retain its spot as the most valuable sports franchise in the U.S.? Behind every eye-popping price tag is a unique combination of economic, cultural, and operational factors that … Read more
For decades, buying a mattress was a complex, frustrating process. Consumers faced overwhelming choices in stuffy showrooms, pressured by eager sales staff, with little clarity on the differences between options. However, a new wave of innovative mattress startups has revitalized this sleepy industry by embracing direct-to-consumer (DTC) models, streamlined online experiences, and clever marketing strategies. … Read more
Technical debt, while often overlooked, can represent a significant financial burden for businesses. Similar to traditional financial debt, it requires proactive management to avoid long-term inefficiencies and escalating costs. The good news is that businesses can apply structured processes to assess, mitigate, and address technical debt effectively. This article examines the financial consequences of technical … Read more
Over the last five years, the private equity (PE) industry has seen a historic $3 trillion in fundraising, fueled by increased investor enthusiasm. However, this influx has brought challenges to generating attractive returns amid rising competition among firms, record-high valuation multiples, and changing market dynamics. One often overlooked but highly impactful consideration is succession planning—not … Read more
To drive meaningful growth within a startup, you must first pinpoint the core KPI that aligns with increasing company value. Growth becomes achievable only when you clearly understand your “perfect client,” the dynamics of user cohorts, and the tipping points that trigger retention and engagement. This article explores best practices to help startups identify and … Read more
