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New Partner Announcement

Wed, 26 Nov 2025 09:26:58 GMT

New Partner Announcement

26 November 2025 | News

We are pleased to announce the appointment of Gianluca Perini as Associate Partner at Valida.

Gianluca brings distinctive expertise in navigating the complexity of rapidly evolving environments, combining the strategic vision of top management with the hands-on execution typical of advisors and CFOs. His professional background spans and connects three core areas: M&A and extraordinary transactions, capital markets, and innovation.

M&A and Extraordinary Transactions
Throughout his career, he has supported entrepreneurs, funds, and investors in complex deals, overseeing the full transaction cycle from deal origination to closing. Among the most notable operations are the acquisition of the industrial assets of Forall Confezioni (Pal Zileri) through Manifattura Veneta — where he served as Managing Director — and the Ca’ Zampa – BluVet integration, contributing to the creation of a veterinary group with over 900 professionals and €50M in revenues.

Capital Markets
He has developed deep experience in financial market dynamics and investor relations, working with national and international funds including Mayhoola – Qatar, Nextalia, NB Aurora, Quantum Capital Partners, and U.S. venture capital investors. His expertise covers due diligence, negotiation, governance, and post-deal reporting.

Innovation
As CFO of the deep tech cybersecurity company DuskRise, he led the firm’s international expansion, establishing the U.S. parent company, overseeing two fundraising rounds, and building teams across two continents. He also contributed to the strategic and financial development of a SPAC in the entertainment sector, managing the IPO model and investor relations.

This unique combination of capabilities makes Gianluca a professional able to operate with vision, adaptability, and accountability, engaging effectively with both financial and operational stakeholders — in early-stage environments as well as during industrial transformation phases.

We are excited to welcome him to Valida.

Why Business Valuation Matters: Guiding Strategic Decision-Making with Key Factors

Wed, 21 May 2025 10:43:25 GMT

Corporate Acquisitions: The 5 Essential Questions to Ask Before Entering Negotiations

21 May 2025 | Articles

Corporate acquisitions are a powerful strategy for business growth and expansion. However, before entering into negotiations, it is essential to ask a set of key questions that can shape the decision-making process and contribute to the success of the transaction. In this article, we explore the five fundamental questions every company should consider before undertaking an acquisition.

1. What Is Our Strategic Objective?

Clearly defining the objective of the acquisition is the first and most crucial step toward a successful negotiation. Consider the following goals:

Expanding market share
Entering new industries or geographic markets
Acquiring proprietary technologies or specialized capabilities

Every acquisition should be driven by a clear and well-defined strategic rationale. It is not merely a matter of seizing an opportunity but rather assessing how the deal contributes to the acquirer’s long-term vision. Market share expansion is among the most common drivers: acquiring a competitor or a complementary operator can strengthen your position and boost competitiveness.

Similarly, entering new markets—whether geographic or sector-specific—can offer valuable diversification and mitigate operational risk. Acquiring intangible assets such as proprietary technologies, know-how, or specialized human capital may accelerate innovation and bridge internal capability gaps. Another key objective is dimensional growth: increasing business volume and margins through operational and financial synergies helps enhance overall resilience and long-term value creation.

Clarifying these strategic objectives—and ensuring they align with the company’s broader direction—is essential for selecting the right targets, structuring the deal appropriately, and approaching negotiations with clarity and purpose.

2. What Is the Financial Health of the Target Company?

A thorough financial analysis of the target company is essential to avoid costly surprises. Key areas to assess include:

Financial statements and cash flows
Debt and liabilities
Historical performance and future projections

Understanding the true financial standing of the target is critical for determining its value and identifying potential risks that could impact integration or expected returns.

This begins with a detailed review of official financial data: reclassified balance sheets, cash flow statements, and profitability margins. But numbers alone aren’t enough. You must examine capital structure, debt maturity, potential contingent liabilities, and working capital quality.

Beyond historical data, it’s essential to evaluate the company’s financial forecasts, scrutinizing their realism in light of past performance and market conditions. Overly optimistic projections may conceal operational weaknesses.

A well-executed financial due diligence not only uncovers hidden risks but also helps formulate a sustainable financing strategy for the transaction that aligns with the acquirer's financial profile.

3. What Is the Company’s True Value?

Determining the target’s real value is fundamental to making a fair and informed offer. Common valuation methods include:

Discounted Cash Flow (DCF) analysis
Market multiples
Valuation of intangible assets

Valuation is one of the most complex and delicate steps in an acquisition. Price and value are not synonymous—the latter emerges from a thorough assessment of financial, industrial, and strategic factors.

DCF analysis focuses on the company’s future cash flow generation potential, while the multiples approach benchmarks the target against comparable industry players. In some cases, it is appropriate to assign value to intangible assets such as customer loyalty, registered trademarks, or technology licenses.

A well-structured valuation reveals the target’s intrinsic value, provides negotiation leverage, and helps estimate synergies, control premiums, and pricing strategies.

Relying on independent experts or valuation advisors ensures objectivity and accuracy throughout the negotiation process.

4. What Is the Target’s Competitive Market Position?

Assessing the target’s position in the market is key to evaluating its growth potential. Consider:

Market share and competitive landscape
Strengths and weaknesses
Differentiation and value proposition

Competitive positioning defines how well the company is equipped to handle market dynamics. A significant market share, strong brand equity, differentiated offerings, or a loyal client base are strategic assets that enhance the target’s value.

Understanding how the company compares to key competitors—its unique advantages and structural weaknesses—is essential. A solid SWOT analysis can provide meaningful insights.

Assessing innovation capability, operational efficiency, and commercial effectiveness allows you to gauge how the acquisition might enhance the acquirer’s own competitive edge. At the same time, vulnerabilities—such as reliance on a narrow customer base—must be weighed carefully.

Since positioning is not static, it should be analyzed in light of market trends, technological shifts, and regulatory developments. Ultimately, the value of an acquisition also depends on your ability to further leverage and develop the target’s strategic strengths.

5. What Are the Risks Involved?

Every acquisition entails risks—and identifying them early is crucial. Pay attention to:

Legal and regulatory risks
Cultural and integration risks
Impact on overall business strategy

Extraordinary operations always carry some level of risk. Success depends not on avoiding risk entirely, but on recognizing and managing it effectively. From a legal standpoint, it is critical to investigate any pending litigation, environmental violations, tax issues, or contractual liabilities. Supplier, customer, and employee agreements should also be reviewed to avoid post-closing surprises.

Cultural and organizational risks are often underestimated but can significantly hinder integration. Misalignments in management styles, leadership dynamics, or corporate values can create friction. A thoughtful integration plan should be developed early on to address team engagement and change management.

Finally, consider the broader strategic impact: acquisitions require substantial resources—financial, human, and organizational—that must be allocated with precision.

By identifying and classifying risks upfront, companies can implement proper mitigation strategies, ensuring the transaction is executed under sound and sustainable conditions.

Conclusion

A successful acquisition begins with a structured, informed decision-making process. Asking the right questions from the outset helps avoid missteps, maximize returns, and maintain control throughout the journey.

Are you considering an acquisition or need support in assessing a potential opportunity?

Our team of experts is here to guide you through every step of the valuation and negotiation process.

Creating Value Through Corporate M&A: Strategies to Enhance Shareholder Returns

Wed, 15 May 2024 15:32:09 GMT

Creating Value Through Corporate M&A: Strategies to Enhance Shareholder Returns

15 May 2024 | Articles

In the dynamic landscape of corporate finance, strategic mergers and acquisitions (M&A) play a pivotal role in enhancing shareholder value and driving sustained growth. Companies leverage M&A transactions to expand market presence, acquire new capabilities, and generate synergistic opportunities that ultimately benefit shareholders. In this blog post, we delve into essential strategies to unlock value through corporate M&A and elevate shareholder returns.

Establishing Clear Objectives for M&A Initiatives

Before embarking on any M&A endeavor, it is essential to define clear and aligned strategic objectives that directly contribute to enhancing shareholder value. These objectives may include expanding market reach, diversifying product portfolios, accessing advanced technologies, or optimizing operational efficiencies. By setting precise goals, businesses ensure that their M&A activities are purpose-driven and focused on delivering tangible benefits to shareholders.

Conducting Comprehensive Due Diligence

Thorough due diligence is critical in M&A transactions to mitigate risks and uncover potential opportunities. This process involves a meticulous assessment of the target company's financial health, market positioning, growth prospects, regulatory compliance, and cultural alignment. By gaining deep insights through due diligence, companies can make informed decisions and maximize the value derived from the transaction.

Leveraging Synergies for Value Creation

Synergies between merging entities present significant opportunities to create value beyond standalone operations. These synergies can manifest as cost savings, revenue growth potential, expanded market access, enhanced operational efficiencies, and diversified product offerings. By identifying and leveraging synergies effectively, companies can optimize shareholder returns and attract potential investors seeking growth opportunities.

Upholding Financial Discipline and Strategic Prudence

Maintaining financial discipline throughout the M&A process is crucial for preserving shareholder value. This involves conducting thorough valuations, negotiating favorable deal terms, and optimizing the capital structure post-acquisition. By adhering to sound financial practices, companies enhance investor confidence and sustain access to capital markets, thereby supporting long-term growth objectives.

Transparent Communication and Stakeholder Engagement

Effective communication is key to building trust and securing support for M&A initiatives from stakeholders. Companies must articulate the strategic rationale behind the transaction, highlight anticipated benefits, and address potential risks transparently. Engaging with shareholders, customers, employees, regulators, and other relevant parties fosters transparency and accountability throughout the M&A process.

Executing Seamless Integration for Value Realization

Post-acquisition integration is a critical phase where synergies are realized and value is optimized. Companies should develop comprehensive integration plans covering organizational alignment, cultural integration, technology harmonization, talent retention, and customer transition strategies. By executing integration efforts seamlessly, companies accelerate value realization and position the combined entity for sustained success.

Continuous Performance Monitoring and Adaptive Management

Value creation is an ongoing journey that requires continuous monitoring and adaptive management. Establishing key performance indicators (KPIs) and milestones enables companies to assess the progress of integration efforts and evaluate their impact on financial performance. Regular performance reviews empower management to make strategic adjustments and optimize operational efficiency, thereby maximizing shareholder returns over time.

Capital Access and Detailed Business Planning for M&A Success

Securing the necessary capital for an acquisition is essential for any M&A strategy. A detailed business plan plays a critical role in attracting investors and lenders by showcasing the strategic rationale behind the acquisition, projected financial outcomes, and growth potential. A comprehensive business plan outlines key elements such as market analysis, competitive landscape, revenue projections, operational strategies, and risk mitigation plans. By demonstrating a clear path to value creation and sustainable growth, companies enhance their credibility and accessibility to capital markets, thereby strengthening their ability to finance successful acquisitions. Moreover, a well-structured business plan facilitates informed decision-making and aligns stakeholders around a shared vision, which is vital for maximizing shareholder returns and optimizing M&A outcomes. When initiating an acquisition, investing time and resources into developing a robust business plan is indispensable for achieving M&A success and delivering significant value for shareholders.

The Importance of Hiring a Corporate Finance Advisor

In navigating the complex landscape of mergers and acquisitions (M&A), the expertise of a seasoned corporate finance advisor is essential. A reputable advisor brings specialized knowledge, extensive experience, and a strategic mindset to the table, guiding companies through every stage of the M&A process with precision and proficiency. From conducting thorough due diligence to negotiating favorable terms and facilitating seamless integration, a knowledgeable advisor plays a critical role in maximizing shareholder returns and optimizing value creation. By leveraging their expertise, companies can mitigate risks, identify growth opportunities, and navigate regulatory complexities effectively. Ultimately, partnering with the right corporate finance advisor empowers businesses to execute successful M&A transactions, achieve strategic objectives, and unlock enduring value for shareholders. When embarking on the M&A journey, investing in expert guidance is instrumental in realizing optimal outcomes and propelling organizational growth in the dynamic corporate finance landscape.

Ready to unlock value through strategic M&A and enhance shareholder returns for your business?

Contact us today to explore tailored corporate finance and M&A solutions that drive growth and create lasting value. Let's collaborate to maximize your company's potential and attract new opportunities in the competitive landscape of corporate finance and investing.

Valida is assisting Innovative Project Financing in Ospedaletti: A Turning Point in the Real Estate Landscape

Thu, 18 Jan 2024 16:03:05 GMT

Valida is assisting Innovative Project Financing in Ospedaletti:

A Turning Point in the Real Estate Landscape

18 January 2024 | News

The real estate panorama of the Italian Riviera has recently witnessed the emergence of a cutting-edge project financing initiative in the tourist destination of Ospedaletti, with the crucial participation of Valida in the presentation of the feasibility study and socio-economic development proposal to the local Township.

The proposal has been submitted to the Municipality of Ospedaletti by Ospedaletti Lands, an affiliate of Monaco-based Aura Capital. It revolves around an ambitious plan for the renovation and management of the seaside "Byblos" complex, aiming to enhance the tourism offerings in the area while also prioritizing the quality of life for residents. The total investment for the project is estimated to be around Euro 40 million.

Instead of buying up the property as originally planned, Aura Capital adjusted the strategy towards project financing management, plus the acquisition of adjacent plots of land for development from Area24. Retaining the "Byblos" main structure as communal heritage, played a central role in the project's transformation.

In this context, Valida has asserted itself as a crucial player in the project, helping Aura Capital with navigating the steps to the legal tender and preparing the financing proposal based on its advisory expertise in the corporate finance and real estate sectors.

The project serves as an example of how project financing can help foster innovation in the development of private-public partnerships, creating synergies that can stimulate the interest of real estate investors, especially in premium settings such as Ospedaletti, and potentially open up new opportunities in an ever-evolving sector.

Mastering the Digital Financial Metrics: Key Insights for CEOs of Digital Businesses

Wed, 07 Jun 2023 09:29:24 GMT

Mastering the Digital Financial Metrics: Key Insights for CEOs of Digital Businesses

7 June 2023 | Articles

In today's digital business landscape, CEOs face unique challenges and opportunities. The rapid advancement of technology, changing consumer behaviors, and the ever-evolving competitive landscape make it essential for CEOs to navigate this dynamic environment successfully. One of the key tools for their success lies in monitoring and leveraging key financial metrics that are specifically relevant to digital businesses.

Digital businesses operate in a fast-paced and data-rich environment. Traditional financial metrics alone may not provide a comprehensive understanding of the intricacies of a digital business. Therefore, CEOs need to identify and track metrics that capture the essence of their digital operations and reflect the unique dynamics of their industry.

These digital financial metrics offer CEOs valuable insights into the financial health of their company. By closely monitoring metrics such as Customer Lifetime Value (CLTV), Customer Acquisition Cost (CAC), and Monthly Recurring Revenue (MRR), CEOs can gain a deeper understanding of their revenue streams, customer acquisition and retention strategies, and the overall financial viability of their business. These insights allow CEOs to make data-driven decisions and allocate resources effectively to drive growth and profitability.

Moreover, these financial metrics aid CEOs in decision-making processes. With a wealth of data at their disposal, CEOs can evaluate the success of their marketing campaigns, assess the ROI of various initiatives, and identify areas where adjustments are needed. For example, tracking metrics like Churn Rate and Average Revenue Per User (ARPU) can highlight potential issues with customer retention and pricing strategies, enabling CEOs to implement targeted solutions.

Furthermore, leveraging digital financial metrics helps CEOs stay ahead in the digital age. The digital landscape is characterized by constant innovation, evolving consumer preferences, and emerging trends. By monitoring the right financial metrics, CEOs can identify early signals of shifts in the market, spot opportunities for growth, and proactively adapt their strategies to stay competitive. They can also benchmark their performance against industry standards and identify areas where they need to improve.

In this article, we will delve into the essential financial metrics that every CEO of a digital business should know. We will provide in-depth explanations of each metric, its relevance to digital businesses, and practical tips on how to leverage these metrics to optimize financial performance and drive sustainable growth. By mastering these metrics, CEOs can navigate the intricacies of the digital business landscape with confidence, capitalize on opportunities, and overcome challenges effectively

1. Customer Lifetime Value (CLTV):

Customer Lifetime Value measures the total revenue a customer is expected to generate over the entire duration of their relationship with the company. For digital businesses that rely on customer retention and recurring revenue models, monitoring CLTV is crucial. CEOs can use this metric to assess the effectiveness of customer acquisition and retention strategies, allocate marketing budgets effectively, and prioritize customer satisfaction initiatives.

2. Customer Acquisition Cost (CAC):

CAC measures the cost of acquiring a new customer for a digital business. It includes marketing expenses, sales commissions, and other costs associated with customer acquisition. By tracking CAC, CEOs can evaluate the efficiency of their marketing and sales efforts, optimize their customer acquisition strategies, and ensure a healthy return on investment (ROI) for their marketing spend.

3. Monthly Recurring Revenue (MRR):

For digital businesses that operate on a subscription-based model, MRR is a critical metric. It represents the predictable and recurring revenue generated each month from subscriptions or recurring service fees. CEOs should monitor MRR to assess the stability and growth of their revenue streams, identify trends, and make informed decisions regarding pricing, product offerings, and customer retention strategies.

4. Churn Rate:

Churn rate measures the percentage of customers or subscribers who discontinue their relationship with a digital business over a specific period. High churn rates can be detrimental to a digital business's financial health. CEOs should closely monitor churn rates, identify the reasons behind customer attrition, and implement strategies to improve customer retention, enhance customer experience, and increase long-term customer loyalty.

5. Average Revenue Per User (ARPU):

ARPU measures the average revenue generated per user or customer. For digital businesses offering freemium models, subscriptions, or tiered pricing structures, tracking ARPU is essential. CEOs can analyze ARPU trends, identify opportunities for upselling or cross-selling, and make informed decisions regarding pricing strategies, product features, and revenue optimization.

6. Cost per Acquisition (CPA):

CPA measures the cost incurred to acquire a new customer or user. In digital businesses, where marketing campaigns and online advertising play a significant role, monitoring CPA is crucial. CEOs can assess the efficiency of their marketing channels, identify cost-effective acquisition strategies, and optimize their marketing budgets to achieve a healthy CPA and maximize ROI.

7. Conversion Rate:

The conversion rate measures the percentage of website visitors or leads that convert into paying customers or complete desired actions, such as making a purchase or signing up for a service. CEOs should monitor conversion rates to assess the effectiveness of their digital marketing campaigns, optimize user experience, and identify opportunities for improvement in the conversion funnel.

8. Return on Ad Spend (ROAS):

ROAS measures the revenue generated for every dollar spent on advertising. For digital businesses that heavily rely on digital marketing and advertising channels, monitoring ROAS is essential. CEOs can evaluate the effectiveness of their advertising campaigns, allocate ad budgets strategically, and optimize their advertising efforts to maximize revenue and profitability.

By mastering these essential digital financial metrics, you can unlock the full potential of your digital business and gain a competitive edge in the digital marketplace. Stay ahead of the curve by consistently monitoring metrics such as Customer Lifetime Value (CLTV), Customer Acquisition Cost (CAC), Monthly Recurring Revenue (MRR), Churn Rate, Average Revenue Per User (ARPU), Cost per Acquisition (CPA), Conversion Rate, and Return on Ad Spend (ROAS).

In conclusion, CEOs operating in the digital business landscape face unique challenges that require a deep understanding of key financial metrics. These metrics provide invaluable insights into the financial health of the company, aid in data-driven decision-making, and drive growth and profitability. By monitoring and leveraging digital financial metrics, CEOs can optimize their financial performance, stay ahead in the digital age, and position their businesses for long-term success. In the following sections, we will explore these essential financial metrics in detail and provide actionable strategies to help CEOs harness their power effectively.

Navigating the World of Litigation Funding

Thu, 19 Jan 2023 10:37:54 GMT

Na vigating the World of Litigation

Funding

19 January 2023 | Articles

Litigation funding is becoming a more popular option for plaintiffs as well as defendants in court cases, particularly when the defendant refuses to settle out of court. This could be because litigation funding gives them a better chance of winning the case than using personal funds.

Further reading through this article will help you with a better understanding of what litigation funding entails.

What is Litigation Funding?

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.

Simply put, litigation funding is a type of commercial financing in which a company or individual receives funds to pursue court cases. The proceeds of a successful lawsuit are then divided among all contributors, with the plaintiff receiving the lion's share. Individuals and businesses use this mean to litigate tort, contract, and employment cases. Litigation funding is often sought after when the plaintiff is unable to afford the legal fees.

Types of Litigation Funding

Below are the different types of limitations funding;

● Third-Party Funding

● Litigation Lending

● Conditional Fee Arrangements

● After-The-Event (ATE) Insurance

● Disbursement-Only Funding

● ATO Small Business Funding

● ATO Test Case Funding

● Crowdfunding

Third-Party Funding

In this litigation funding, an external party, either an agency or an individual, provides the funds to be used in carrying out the legal case. This is done with the hope of getting a portion of the proceeds of the damage/ settlement fee which the plaintiff will get from the case.

When Do You Use Third-Party Funding?

Third-party funding best comes in when:

● The plaintiff doesn't have the amount needed to run the lawsuit.

● The plaintiff decides not to use personal funds, to reduce personal financial risk

● The plaintiff or defendant's claim has the potential to yield a good amount for the damage fee. This is more like an investment scheme.

Conditional Funding Vs. Unconditional Funding

In the case of unconditioned funding, the third-party/investor finances the laws suite, without any contribution from the plaintiff, while expecting a good return for the legal investment. However, this is often seen when the case appears to have a low financial risk or a higher chance of winning.

In terms of conditional funding, the investor pays a percentage of the fee at the initial stage of the lawsuit, while he withholds the balance till the case is declared a success. This keeps you as an investor safe from bearing large financial losses if the case doesn't go well.

Litigation finance and attorney ethics

Attorneys and law firms are permitted to share case information with investors after obtaining the client's consent. Furthermore, they are permitted to honor a client's written lien for a portion of a recovery's proceeds.

When it comes to confidentiality, the attorney-client privilege comes to play. This is a legal principle that secures certain information exchanges between an attorney and a client from public disclosure. Furthermore, this work confidentiality secures documents compiled by attorneys and investors in advance of litigation from discovery.

Segmentation of The Litigation Funding Investment Market

The Litigation Funding Investment market can be segmented into three main categories: type, enterprise size, and consumers/users. Under the type segment, the market includes

● Commercial Litigation

● Bankruptcy Claim

● International Litigation

● Others

Based on the enterprise size, the limitations funding the investment market are divided into;

● Large enterprise

● Small & medium-sized enterprise

The following sectors transact with litigation funding;

● BFSI

● Manufacturing

● Media & Entertainment

● IT & Telecom

● Healthcare

● Others

The Future of Litigation Funding

Research carried out by CMI gives a picture of the stand of litigation funding in the nearest future. Its investigation reports on the drivers and constraints of the litigation funding investment market. It also attempted to relate the impact it might have on demand during the forecasted period. Furthermore, the report examined global economic opportunities that could be harnessed through the litigation funding investment market.

From CMI's report, you can deduce that investment in litigation funding is growing rapidly across nations. The global litigation funding investment market was valued at $12.2 billion in 2021 and is expected to grow to about $25.8 billion by 2030. This implies that between 2022 to 2030 there should be a compound annual growth rate (CAGR) of approximately 9%.

Here is another prediction by Deminor on the EU litigation funding investment market. It proposes a boost above 100%, with a projected gain of about $3.7bn in 2025, which is about 16% of the global market's annual gain of $18bn.

The CEO of Deminor, Erik Bomans, also forecast a 8.3% annual growth in the EU litigation funding market. Implying that the EU litigation funding investment market is fertile soil for profits.

Conclusion

Litigation funding is a powerful resource that can help individuals, businesses and even government agencies finance major legal matters. Having a good understanding of the possible options available for you when it comes to financing legal matters is of great advantage to you or your organization. With a better understanding of these financial options, parties involved in any type of legal proceedings can make informed decisions regarding how they will fund their case.

If you are interested in learning more about litigation funding, or if you are a plaintiff or defendant looking for funding, please contact us for more information.

Vertical Farming: a fast-growing opportunity for company and investors

Fri, 07 Oct 2022 11:41:02 GMT

Vertical Farming: a fast-growing opportunity for company and investors

07 October 2022 | Articles

Vertical farming is the process of growing plants in vertically stacked layers, usually indoors, in buildings called "plant factories". It is a form of urban agriculture that grows crops without the need for natural sunlight, and which has be en practiced for centuries on small scales, but modern technology has enabled this process to be scaled up to grow food for cities.

Vertical farms are a new way to produce food for our ever-growing population.

The world is starving for space. The population is increasing, while we are running out of resources. One solution is to use less land and grow our food on vertical farms. Vertical farms save space and don't require soil or pesticides, they use 95% less water than traditional farms, produce zero emissions, and work 24/7 without the need for humans to monitor them. There are many kinds of vertical farms, from rooftop gardens to warehouse farms and everything in between. Large-scale vertical farms are typically called urban or indoor farming while smaller ones are usually named greenhouses or container gardening.

The main techniques used to grow vertical farms are Hydroponic (Aero) and Aquaponics.

Aeroponics is a method of growing plants with little or no soil by constantly spraying them with a nutrient-rich mist. It’s more efficient in that it uses neither soil nor sunlight, and requires less space.

Aquaponics is a system that combines hydroponics with recirculating aquaculture. It has the benefits of hydroponics and aquaculture, with the added benefits of sterile growing conditions and the elimination of the need for outside inputs such as fertilizer.

Vertical farming global market trends

While the world population levels are continuing to grow, vertical farming has been proposed as a solution to our food shortage problems. Vertical farms could provide enough food to feed an estimated population of 9 billion people by 2050, while using up less than a quarter of the land mass required by traditional agricultural practices.

With over 7 billion people on the planet and counting, the demand for food is at an all-time high. However, it's hard to grow food with conventional methods due to outdated farming techniques, increased land issues, and climate change. Vertical farming solves these problems by significantly reducing the amount of space needed for food production. It's estimated that vertical farms can produce the same number of crops as one acre of land.

The global vertical farming market has been steadily growing over the last years as population size increases and living in urban cities becomes more popular. In 2020, the vertical farming market reached some 5.5 billion U.S. dollars, but the market value is expected to increase to about 20 billion U.S. dollars by 2026. Being able to use vertical space and reducing the need for additional land and construction activity contributes to the appeal of vertical farming in large cities. Demand for vertical farming is expected to increase, largely due to the popularity of organic food.

The compound annual growth rate (CAGR) of the market for vertical farming in the United States was estimated to be 24.7% between 2020 and 2027. During that time, Canada, Germany, and Japan are respectively expected to grow at a CAGR of approximately 16.9%.New Paragraph

The global vertical farming market is driven by factors such as the increasing demand for sustainable food and raising awareness about the health benefits of vertical farming. The market is also driven by the increasing investments in the vertical farming industry by various governments and private firms. For example, the government of Japan has invested in technology to increase food production in the country.

Vertical Farming is already attracting large capital

Vertical farms typically receive funding from angel investors and venture capitalists. In the US, several vertical farms have received investment from large companies, including Walmart, which announced plans to invest $250 million to increase its production, and Goldman Sachs, which invested $100 million into AeroFarms.

Bowery Farming, the largest vertical farming company in the United States, has secured $300 million in additional funding in a round led by Fidelity Management & Research Company LLC, with significant follow-on investment from existing investors like GV (formerly Google Ventures).

New York-based Gotham Greens, an indoor farming startup, raised a whopping $310 million in Series E funding led by BMO Impact Fund and Ares Management Fund. The company has raised $440 million since it launched in 2009. in the United States and Europe.

In Europe, the Amsterdam-based PlantLab, a developer of indoor urban farms that grow salad vegetables, herbs, tomatoes, and cucumbers, raised 50 million euros ($57 million) in financing led by prior backer De Hoge Dennen Capital. The funds will be used to open more production sites outside the Netherlands, North America, and Europe.

The goal, the company says, is to produce crops in relative proximity to large populations, thus reducing transport costs, CO2 emissions, and food waste.

Conclusions

For centuries, mankind has been growing plants conventionally. But the reality is that we are utterly dependent on a finite amount of land, water, and sunlight. We can no longer depend on conventional farming to feed the world. Vertical farming is a new technology that solves these problems by growing plants in hydroponic towers and controlled-environment greenhouses.

Growing plants in this way can be more than 10x as productive as traditional farms. Additionally, it takes up less space and requires less water than conventional.

i. Source: Bloomberg Market Intelligence, Statista

Metaverse may be a multi-billion market opportunity, the next tech platform

Mon, 01 Aug 2022 08:38:48 GMT

Metaverse may be a multi-billion market opportunity, the next tech platform

01 August 2022 | Articles

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. Due to the rising need for immersion, virtual reality technology is often related to metaverse development. It is thought that Web3, and the basis for a diverse internet, has impacted the process of developing the metaverse. Using buzzwords like Web3 and The Metaverse to overestimate the advancement of different connected technologies and initiatives for public relations objectives is a common practice nowadays. Metaverses have issues with privacy, addiction, and user safety, all of which derive from the social networking and software industry as a whole.

With a market potential of approximately $800 billion, the metaverse is estimated to be the next large technological platform that will attract online game producers, social networks, and other technology giants. The metaverse is the coming generation of technology and internet interactions utilizing instant 3D software to bring together the physical and digital domains. It creates a new business potential for prominent online entertainment and social media organizations. Companies that are most vulnerable across sectors have been included in a global metaverse topic basket. Investors ought to anticipate earning a considerable percentage of personal income through a VR platform, experience, as well as transaction. For online game developers and gaming gear, the primary market may approach $400 billion in 2024. On the other hand, prospects in live shows and interactive media cover the remaining amount.

Based on recent research, this sector may grow by over $780 billion in 2024, up from around $479 billion in 2020, reflecting a yearly growth rate of 13.1%. Live entertainment like concerts and sporting events, as well as social media advertising-income, may increase as these developers keep enhancing their games into the 3D online universe which more closely imitates the social interactions of human beings. Gaming software, services, and advertising income are just a small portion of the entire Metaverse business. 3D virtual worlds, which are becoming more popular, are a potential revenue source for many online game developers.

The current gaming software and service sector and increased sales of gaming gear will be the key Metaverse income opportunities for video game developers in the future. More than two-thirds of the industry's income comes from in-game advertising and software and services revenue. This market is anticipated to grow to about $413 billion in 2024 from $275 billion in 2020. For online game developers, it's important to get a larger piece of the market by elevating current games into virtual worlds, even if this industry is already established. For the balance of the core market potential, the gaming gear, including gaming PCs and accessories, as well as AR/VR devices like Facebook's Oculus, is included.

To make use of the Metaverse possibilities, game developers may use real events, such as concerts, film screenings, and sporting events, to create 3D virtual worlds. Epic Games and Roblox have previously held events within their gaming platforms, while Unity is looking to explore ways to introduce live sporting ideas and tools into the 3D development kits. Money from a live entertainment enterprise that potentially becomes an inclusion of the Metaverse concept—films, live music, and sports—may top $200 billion in 2024, approximately flat compared to 2019.

The combination of the megatrends of gaming, social, and user-generated content may pit online game developers against current social networks for control of the $800 billion Metaverse economy. Game engine makers Unity and Epic may experience more software demand as Facebook's user base and virtual reality initiatives grow.

However, there is still plenty of chances for other gaming developers and interactive media firms, such as Roblox, Minecraft, and Epic Games' Fortnite to alter their current services or develop other ones to benefit from the Metaverse's rapid growth, EA's The Sims, Take-GTA Two's Online, Nexon's MapleStory, and Dungeon&Fighter Online have achieved the attraction of active user populations in great numbers. These firms may try to include more user-generated content and social features to meet the growing demand for Metaverse services. Virtual 3D environments in video games have the potential to increase user engagement and, therefore, revenue development.

However, insurers are seeing big chances to provide current and new products in the metaverse. However, they will have to overcome enormous regulatory skepticism in a sector that is fraught with privacy and cybersecurity threats to succeed. As the use of metaverse-based platforms becomes more widespread, it is projected that security concerns regarding the digital identities of people and companies will likewise rise in tandem. Insurance industry analysts estimate that, among other hazards, persons and property will need to be protected against electronic crime, robbery, malware, privacy violations, and business disruption.

According to Carl Niedbala, co-founder, and chief operating officer of Founder Shield, an insurance broker, there may soon be an opportunity to provide financial protection for land and property in the metaverse. There will undeniably be a significant opportunity for internet insurance providers to distinguish themselves from the competition by offering enhanced protection and sponsorships that take into account the increased risk associated with the greater proportion of an individual's wealth that is tied to their internet experience, he continued.

The notion of a metaverse, also known as a virtual world, gained widespread attention when internet giant Facebook endorsed it last October and changed the name of its platform to Meta to reflect an expanded emphasis. Metaverse systems are often powered by blockchain, cryptocurrencies, and non-financial tokens (NFTs), all of which are subject to little to no governmental control. Experts are concerned that broad use of the metaverse may bring with it new but highly uncertain dangers. For example, it is unknown if an individual user with a poor security protocol may serve as an entry point into broader cybercrime operations - a concern that has risen to the top of the priority list in recent months, particularly in light of Russia's invasion of Ukraine.

i. Source: Bloomberg Market Intelligence, Statista

Capital Raising for Mid-Cap (IPO and Private Equity)

Thu, 28 Oct 2021 10:03:33 GMT

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

Next Generation EU Opportunities for Companies and Investors

Tue, 27 Jul 2021 10:34:32 GMT

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

Mon, 19 Oct 2020 14:42:34 GMT

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