News & Insights

Marina Ospedaletti ITALY
18 Jan, 2024
Valida is assisting Innovative Project Financing in Ospedaletti: A Turning Point in the Real Estate Landscape
Digital business, financial metrics, KPI, performances, growth, corporate finance
07 Jun, 2023
Mastering the Digital Financial Metrics: Key Insights for CEOs of Digital Businesses
Litigation funding
19 Jan, 2023
Litigation Funding Investment is a type of alternative law case financing that involves an external financier. It provides the plaintiff with the financial resources needed to contest a dispute before going to the arbitration tribunal or a judicial forum. In exchange, the financier receives a fixed percentage of the monetary relief obtained by the plaintiff because of the settlement process.
07 Oct, 2022
Vertical farming is the process of growing plants in vertically stacked layers, usually indoors in buildings called plant factories. Is a form of urban agriculture that grows crops without the need for natural sunlight. A concrete opportunity with huge potential.
Metaverse
01 Aug, 2022
In a metaverse, several 3D virtual environments emphasize human interactions. A virtual reality (VR) and augmented reality (AR) headset is often utilized in fictitious and futurist science movies and videos to suggest one, global virtual world which is supported by the usage of the headsets.
Capital Raising for Mid-Cap (IPO and Private Equity)
28 Oct, 2021
EU businesses showed great success in raising capital via IPO and private equity financing despite the slowed-down growth projected during the Coronavirus pandemic. In Europe, the value of private equity funds raised in 2020 was EUR 101 billion, and while the value of funds raised through European IPO activities decreased by 56%, it wasn't as bad as the UK IPO activities, for example. Therefore, it is safe to assume that there is no liquidity shortage for European businesses. The entrepreneurs just need the basic knowledge and the right technical expertise. Mid Cap With a total market capitalization between EUR 500 million to EUR 10 billion midcap firms are one of the three major stock classifications, and they provide a middle ground between the growth, risk, and volatility tradeoffs of their smaller and larger counterparts. Mid-cap businesses usually enjoy a positive interest from institutional, public, and private investors. After all, they are in the middle of their growth curve, with revenues, profits, and prospects poised to grow multifold in a short period. Mid-cap companies haven't quite made it to large-cap status, but they have a longer track record of success than small-cap companies. These companies typically have a well-established business model and a strong presence in their respective industry, and they may see rapid growth as they increase market share. They are frequently the focus of mergers and acquisitions by large-cap corporations. Mid-cap corporations, on the other hand, include once large-cap companies that have shrunk in size and power. How Does Market Capitalization Work? An essential part of raising capital is to value the company. Both index providers and portfolio managers use market cap data to decide on benchmarks and investment strategy respectively. Market capitalization, often known as market cap, is a formula to calculate a company's stock market worth. The market capitalization of a corporation is equal to the stock price multiplied by the number of outstanding shares. A corporation with 100 outstanding shares, each worth $100, would have a market valuation of $10,000 (100 shares x $100). Raising capital to enable growth A mid-cap firm may be enticing to investors since it is predicted to grow and increase in earnings, market dominance, and profitability; it is in the midpoint of its growth curve. One of the primary motivations for a private firm to raise capital is for financial reasons. Raising capital provides the company with access to cash, typically in substantial amounts. This money infusion might be used to pay down debt, fund new enterprises or expand research and development (R&D). It also enables businesses to strengthen their balance sheets and secure future financing. However, two key factors can make or break the capital raising efforts of a mid-cap business. These are: Reasons for capital raising: There can be many reasons for a mid-cap business to raise capital - geographic expansion, getting ahead of competitions, new facilities, and such. Irrespective of whatever it might be, it needs to be compelling enough to satisfy regulators and the investors. Communicating the equity stories: Next, the reasons and the plans need to be explained and communicated precisely to the prospective investors. Effective communication is crucial; otherwise, investors won’t know a brilliant venture's unique stories and offerings. IPO or Private Equity Companies choose to go through the IPO process or remain private for a variety of reasons, including raising capital or reducing expenses while saving time. An initial public offering (IPO) is the procedure by which a private firm sells shares to investors on a stock exchange. This gives the general public ownership of the corporation. IPOs provide companies with access to finance, whereas remaining private allows companies to function without having to report to equity investors. Going public can be much more expensive and difficult, while remaining private inhibits a company's liquidity. However, private companies must typically have been through a phase of growth and prosperity before deciding to go public via an IPO. If a corporation decides to stay private, ownership is retained by private owners, albeit stock can be issued to shareholders. Rather than needing to satisfy Wall Street's expectations, staying private allows a company more discretion to choose its investors and maintain its focus or strategy. And, because going public entails a risk, the benefit of being private is that it protects the company from that risk. Finally, whether it’s an IPO or private equity financing, businesses need strong industry expertise and the proper network channels to raise capital successfully. As the money also needs to come from the right investors, getting the help of a specialized partner in the sector can prove to be hugely beneficial. Valida’s team of professionals and experts with solid international track-record and know-how in diverse sectors can cover all strategic and financial needs of our clients. i. Source: Statista
NextgenerationEu, Europe, Investments, Business
27 Jul, 2021
As the socio-economic damage from the Covid-19 pandemic showcased an increasing gap of wealth between EU countries, the European Union responded with the Next Generation EU program. The program allows the EU to raise about €750 billion or 5.6% of its GDP to fund national-level recovery plans. With a three-layer safety net, the funds are mainly planned to be disbursed among the EU states in grants and loans. The plan is to foster an efficient transition into a digital and eco-friendly future while also reducing the economic divides among EU nations. Recovery and Resilience Facility (RRF) The RRF has a €672.5 billion war chest - €360 billion in loans and the rest in grants. The facility hopes to support lasting investment into both recovery plans and future-proofing sustainable businesses. REACT-EU REACT-EU is a €50.6 billion funding for the already existing Cohesion Policy and set to run until 2027. It will facilitate society’s transition into the green and digital economy. In other words, it is good news for electric vehicle manufacturers and online businesses. InvestEU The perfect support mechanism for recovering companies and investors, InvestEU focuses on achieving the long-term ambitions of the European Union. The European Investment Bank will implement 75% of the budget guarantee in four policy categories, encouraging SME, green and digital investment instruments. EAFRD A funding instrument to support agriculture, agro-food and forestry companies in the EU, the Next Generation EU program will boost the EAFRD budget by €8.1 billion. The member states will get the funding between 2021-2022. To be eligible, investors and companies will have to prepare themselves according to their respective national reform policies. At Valida, we have an international track record in corporate finance, financial control and business strategy consulting, to help investors and companies position themselves, to take advantage of NextGenerationEU opportunities.
5 Whys You Should Set Up Your Business in Germany
19 Oct, 2020
Busines Strategy | J anuary 2021 5 Whys You Should Set Up Your Business in Germany Do you have a business idea in mind? Are you looking for opportunities to execute your business plans? Have you been looking forward to setting up your business in a foreign country? Germany is the choice for you to make. Entrepreneurship is not any easy task. Setting up a business requires much more than having an idea in your head and some capital at hand. It’s not just a person’s capability to work that matters. There are numerous external factors which have defining impact on success or failure of a business. Economic environment, availability of opportunities, market conditions, regulatory system and basic support, everything matters. For this reason, evaluating the pros and cons of setting up a business in a particular region or country should be evaluated. Germany has become the home to non-German nationals for entrepreneurship. Small and larger investments in several sectors of the economy have been made by overseas entrepreneurs, expats or immigrants. If you are looking forward to setting up your business in Germany then here are the five whys that you certainly should. 1 It Lies at the Heart Germany lies at the heart of Europe, it is set at the nucleus of the European economic network. It’s strategic geographical location bears much more benefits the entrepreneurs that many economies. It’s access to the market, a coherent communication network and diversity of opportunities is the foremost reason for which you should choose to set up your business in Germany only. 2 The Economic Muscle Germany has a very strong and dynamic economy which has only surged upward on the growth curve. At present, Germany is leading Europe in entrepreneurship given the market competitiveness, level playing field for all entrepreneurs and its pro-business policies. The economy has survived all major setbacks, sustained strong growth and keeps diversifying. If you have an idea, it should be executed in an environment with economic strength as formidable as Germany’s. 3 It’s All Even Aside availability of opportunities and market competitiveness, what is required for business and industry to flourish is a stable economy. An economy which keeps swinging like a pendulum between a boom and a slump is not where an entrepreneur looks for rapid grown and long-term sustainability. Germany has one of the most stable economies in and outside the Eurozone. It is the place where ideas can flourish and businesses can grow over the long term. 4 Stagnation is Outlawed The German economy is known for its market competitiveness and an innovation-friendly environment. It has excelled by allowing margins to be exploited and diversity to be owned. Diverse and innovative ideas are backed by research and development, constant and growing competition and support for advancement. It is one of the economies which have excelled and expanded due to innovation. If you have an idea and a plan, Germany is the place for its execution. 5 You Can Rely on Germany You can rely on Germany to support your ideas and plans for business and entrepreneurship. One of the biggest plus points is the infrastructure. Any kind of information or assistance that an entrepreneur may ever need is available. There are information centers which provide professional support to entrepreneurs. Germany owns the idea you bring to its economy and it helps its development. Ways are there for those with the will. If you are an entrepreneur with an idea and willingness to work for it, Germany is the call to make
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