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  • Writer's pictureAmi Kassar

AmiSight 12/20: Breakout Valuation

Recently, I sat down with Patrick Donohue, founder of Hill Capital Corporation, to discuss his book, Breakout Valuation, and his critical lessons for entrepreneurs.

Hill Capital Corporation is a private investment fund that finances and supports emerging growth companies. When asked about the key ingredient to evaluating a potential investment, Patrick explains that it's all about the people. "For us, it's really about the people who are going to show up every day and execute the vision of that business. So we're looking for entrepreneurs with a vision of where they want to get to and a sense of what kind of capital they need to help get them there”.

Patrick advises, when thinking about equity, to understand what you're trying to achieve with that equity investment and what the investor is looking for in return. With an equity partner, it's like you're getting married or getting married again. Try and take the time to dig in and think about how you would handle good times and bad - don't rush to jump in. There are a lot of expectations and a lot of oversight that come with equity investors.

Finally, when it comes to ​the capital injection, be intentional. It's wise to come up with two or even three very different scenarios and weigh ​each option. Please slow down and do it before there's a crisis. I challenge entrepreneurs to look for a completely different answer once they have the solution - the contrast will reveal clarity on the best outcome.

If you want to learn more about the Breakout Valuation, tune in here:

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