Sigma Ventures: Evaluating an Early-stage Venture Capital Investment (A)

Research output: Other contributionCase Studies

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 languageEnglish
Number of pages8
Publication statusPublished - 25 Aug 2023

Case number

FIN-23-088

Case normative number

FIN-23-088-CE

Case type

Field Case

Update date

11/04/2024

Supplement

For more details, please visit www.chinacases.org

Published by

China Europe International Business School

Keywords

  • Angel Investment
  • Project Appraisal
  • Valuation

Case studies discipline

  • Finance

Case studies industry

  • Finance and Insurance

Fingerprint

Dive into the research topics of 'Sigma Ventures: Evaluating an Early-stage Venture Capital Investment (A)'. Together they form a unique fingerprint.

Cite this