Software companies can be funded in a variety of ways: venture capital, self-funding, and debt, among others. In order to receive financing, a company is evaluated on its ability to generate future cash flows. After all, a valuation is a number that summarizes the present value of future cash flows.

Determining that valuation number is a complicated, subjective process. If the valuation can be determined more intelligently and objectively, then smarter financing decisions can be made. This is the reasoning behind the company Capital, which aims to build a better modeling system for evaluating companies.

Blair Silverberg and Chris Olivares are founders of Capital, and they join the show to explore the modeling process for valuations, and their strategy for doing this with their software models.

Sponsorship inquiries: [email protected]

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