Earlier in November, we launched a new report type on the Collective Shift platform: Crypto Valuation Reports. Available to Pro members and issued monthly, the Crypto Valuation Report delivers a comprehensive evaluation on a specific project within the crypto ecosystem.
The inaugural issue covered Nexus Mutual, a protocol built on Ethereum that functions as a people-powered alternative to insurance. (For more on Nexus Mutual, watch our interview with its co-founder.)
The report ascribed a reasonable range of market cap estimates to Nexus Mutual. These were calculated after the following:
- Analysing Nexus Mutual’s business model, theoretical revenue estimates and industry trading multiples.
- Applying asset-, market- and income-based valuation methodologies—and concluding a low and high indication of value for each.
- Compiling a public company comparable list and using it to forecast Nexus Mutual’s revenue, income statement ratios and multiples selection.
A summary of investment risks was also included in the report, as was an analysis of Nexus Mutual’s current and potential future fundamental valuation propositions.
About the Author
Authoring the Crypto Valuation Reports is cryptocurrency researcher Nathan Gurr. A dual Australian–U.S. citizen, Nathan has lived in California since high school and currently resides in San Francisco.
After working as a CPA, Nathan transitioned his career to valuations in 2016 when he joined equity fintech startup Carta. Here, his team built software to automate private company valuations whilst also collectively performing 800-plus valuations monthly.
In his time at Carta, Nathan performed roughly 750 so-called ‘409A valuations’ and reviewed 2,000-plus companies. (In the U.S., a 409A valuation is a fair market value of a company’s common stock.)
Since August 2020, Nathan has been applying VC valuation methods to cryptocurrencies. He believes that VC startups and crypto organisations are highly similar in terms of both business stage and risk/return profile. In his words:
“Many crypto organisations are not only pre-revenue, but also pre-economic feasibility—given they are doing commerce with novel economic crypto-primitives as well as novel economic systems which remain unproven. I’ve always viewed crypto investing as VC investing on steroids.”
About Collective Shift
Launched in October 2020, Collective Shift is a platform designed to help people understand and navigate the world of Bitcoin and cryptocurrency in general.
The Knowledge Centre is Collective Shift’s free online platform for learning the basics of Bitcoin and cryptocurrency in an accessible and easy-to-understand way.