How the valuation of chimpchange may change

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On May 3, 2016, Thomas Andrews, a young investment banker, was examining the current situation of ChimpChange Limited (ChimpChange), a financial technology (fintech) start-up based in California. After working to develop the necessary platform, establish the required banking relationships, and obtain regulatory approvals, ChimpChange had launched the general-release version of its application (app) and started full operations in August 2015 (see Exhibit 1). Within the first nine months, the company already had 80,000 customers, but it needed more to reach its break-even point.

Discuss how the valuation of ChimpChange may change depending on the investors (venture capital/private equity or IPO/public equity) and location (domestic or international markets), and discuss how this may affect investors' decisions.

Reference no: EM133067976

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