This last video completes the three series post on projecting early stage capitalization and the effects a number of financing rounds has on an exit event.

EBITDA – Earnings before interest, taxes, depreciation, and amortization added back. EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions (i.e. varying levels of debt or mezzanine capital with varying structures or interest rates, capital expenditures, etc.).
EBITDA Multiple – sometimes also referred to as Enterprise Multiple, it is calculated as the …