560th Roundtable For Entrepreneurs Starting In 20 Minutes: Live Tweeting By @1Mby1M

Today’s 560th FREE online 1Mby1M Roundtable For Entrepreneurs is starting in 30 minutes, on Thursday, January 20, at 8 a.m. PST/11 a.m. EST/5 p.m. CET/9:30 p.m. India IST. Click HERE to join. PASSWORD: startup  All are welcome!

Featured Videos

1Mby1M Virtual Accelerator Investor Forum: With Seong Kim, Corporate Strategy & Development at Chegg Inc. (Part 4)

Sramana Mitra: What have you disclosed on the valuation on this most recent acquisition? In general, how do you think about valuation? How does valuation play into your acquisition decision?

Seong Kim: The valuation of this deal was approximately $436 million. This is based in London and Madrid. It’s definitely a key factor that impacts whether or not a deal is done, but it shouldn’t be the most important. Valuation is a dependent variable that is influenced by a multitude of factors, some of which, founders can influence and others, they can’t.

Indian Unicorns 2022: Eruditus Targets the K-12 Market

The global e-learning market is expected to grow at 21% CAGR to reach $1 trillion by 2027. India’s Unicorn entrant, Eruditus, is aspiring to become one of the leading players in the market.

Video FAQs

1Mby1M Virtual Accelerator Investor Forum: With Seksom Suriyapa, Partner at Upfront Ventures (Part 4)

Sramana Mitra: I’m going to double-click down on your second category. You have product-market fit. The options are, do we sell the company now or do we go for another round of funding. If we choose to go for another round of funding, we will get funded because we have product-market fit. In that scenario, how does valuation compare in an exit versus a funding valuation?

Seksom Suriyapa: This is where things get tricky. Because of the way the venture market is today, which is frothier than where an acquirer is willing to pay, the sticker price on getting venture money will look very attractive from a valuation point of view. The tension is two-fold. One is when you raise money at a relatively high valuation because that’s where the venture is pricing you, you’re also building an execution that could potentially be heroic. You have to grow into these valuations through executions.

1Mby1M Virtual Accelerator Investor Forum: With Seong Kim, Corporate Strategy & Development at Chegg Inc. (Part 3)

Sramana Mitra: Is the driver in that acquisition strategy upselling from your current user base and giving them more products to get into?

Seong Kim: Yes, it serves the two purposes that I alluded to before. It expands the suite of products and services and support we can offer to our existing base. It also extends our addressable market and audience. You look at the other three-quarters or so of language learners out there in the world that engage with this platform or other platform, they are looking at learning for work.

January 20 – 560th 1Mby1M Mentoring Roundtable for Entrepreneurs

Entrepreneurs are invited to the 560th FREE online 1Mby1M Mentoring Roundtable on Thursday, January 20, 2022, at 8 a.m. PST/11 a.m. EST/5 p.m. CET/9:30 p.m. India IST.

If you are a serious entrepreneur, register to “pitch” and sell your business idea. You’ll receive straightforward feedback, advice on next steps, and answers to any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.

You can learn more here and register to pitch or attend here. Register and you will receive the recording by email, even if you are unable to attend. Please share with any entrepreneurs in your circle who may be interested. All are welcome!

Indian Unicorns 2022: upGrad Consolidating within the EdTech Sector

India’s online education market is expected to grow to $3.5 billion in 2022 from $735 million in 2019. India boasts of the world’s second-largest e-learning market after the US that is catered by more than 9,000 education technology startups. upGrad is one of the Unicorn players consolidating this space.

1Mby1M Virtual Accelerator Investor Forum: With Seksom Suriyapa, Partner at Upfront Ventures (Part 3)

Sramana Mitra: What role does valuation play in whether an acquisition happens or not?

Seksom Suriyapa: This is a tough one. The reality is that it tends to be the issue of whether a deal happens or not. Very professional corporate development teams are highly disciplined around how they value deals. Similarly, in the case of venture-backed companies, they have investors that are looking to maximize investor returns.

That constant tension between the two causes these deals to be valuation-driven when, in fact, there are a lot of other factors beyond valuation that are important. If I turn to the seller side, it’s often very difficult for minimally-capitalized ones because there is often an asymmetric advantage that buyers have. Sellers are selling their first-ever business. Buyers are doing this all the time.