Abstract
Sigma Ventures is a venture capital (VC) firm that invests in technology, intelligent manufacturing, healthcare, and consumer services companies in their early and growth stage. In late 2017 Li Yuan, Sigma Ventures' founder and managing partner, needed to decide whether a startup called Isolimit was worth investing in. If so, then Isolimit was to be valued.
The case describes how Sigma Ventures assessed Isolimit's team, market, and technology and shows how Sigma used the venture capital method to evaluate its potential investment. Specifically, the case discusses three aspects of early-stage venture capital investments: (1) How should venture capital firms evaluate early-stage startups? (2) What is the logic of the venture capital method? (3) How should venture capital firms apply the venture capital method to determine the percentage stake they should receive in exchange for their investment?
Original language | English |
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Number of pages | 8 |
Publication status | Published - 25 Aug 2023 |
Case number
FIN-23-088Case normative number
FIN-23-088-CECase type
Field CaseUpdate date
11/04/2024Supplement
For more details, please visit www.chinacases.orgPublished by
China Europe International Business SchoolKeywords
- Angel Investment
- Project Appraisal
- Valuation
Case studies discipline
- Finance
Case studies industry
- Finance and Insurance