Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

For later-stage startups with revenue, one can use the financial projections to estimate the company’s valuation for fundraising purposes. 

Discounted cash flows, called the DCF method, values the company based on future cash flow projections. 

This weights the value of the company on future revenues rather than today’s revenues.

The DCF method is purely a financial valuation method and does not take into account other factors such as the team, intellectual property, or sales activities that have not yet been realized with cash flows.

Your financial projections should have the key elements including projected cash flows, a chosen discount factor, and a net present valuation of the free cash flows to generate the DCF valuation.

It’s just one more valuation tool. Predicting cash flows in the future can be difficult given the sales process is not fully in your control.


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In this episode, Hall welcomes Shawn Singh, Chief Executive Officer & Director at VistaGen Therapeutics, Inc.

Located in South San Francisco, California, known as the “Birthplace of Biotech”, VistaGen Therapeutics is a clinical-stage biopharmaceutical company developing new-generation medications for anxiety, depression, and other central nervous system, or “CNS,” diseases and disorders where current treatments are inadequate to address high, unmet needs. Their CNS portfolio includes three differentiated CNS drug candidates, PH94B, PH10, and AV-101, each with a novel mechanism of action, an exceptional safety profile, and therapeutic potential for multiple indications. 

Shawn has over 25 years of experience working with private and public biotechnology, medical device, and pharmaceutical companies, a venture capital firm, and a profitable contract research and development organization (CRO), serving in numerous senior management roles. Prior to joining VistaGen, he served as President of Artemis Neuroscience, and prior to VistaGen’s acquisition of that company, Managing Principal of Cato BioVentures, a healthcare-focused venture capital firm.  

Earlier, Shawn assisted with the IPO of SciClone Pharmaceuticals, a revenue-generating, China-focused specialty pharmaceutical company, and served as its Chief Business Officer before departing to form Cato BioVentures with the founders of Cato Research. He began his career as a corporate finance attorney in the Silicon Valley offices of Morrison & Foerster LLP, with a transaction-focused practice involving both emerging biotechnology and high technology companies. Shawn earned a B.A. degree, with honors, from the University of California, Berkeley, and a J.D. degree from the University of Maryland School of Law. He is a member of the State Bar of California.

Shawn explains this domain in great detail and the work he and his team do, which is focusing on medications that address both neuropsychiatric and neurological disorders. He describes the current standard of care in this industry and how it can be improved. Shawn also shares with Hall a benefit of the COVID-19 pandemic, in that it has helped lessen the stigma attached to mental health illnesses.

You can visit VistaGen Therapeutics at www.vistagen.com/, or via their LinkedIn page at www.linkedin.com/company/vistagen-therapeutics, or on Twitter at https://twitter.com/vistagen.  

Shawn can be contacted via LinkedIn at https://in/shawnsingh/, and via email at ir@vistagen.com or ssingh@vistagen.com.