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5.5 Caliber E: Potential end and start value

In this section, you will define the initial value of your creation based on the final value resulting from the potential market of your creation.

Refer to the reference example

The CreaCORN is the driving force of the Unicorn Plan. This Plan aims to contribute to unicorn growth through:
A close partnership with incubators,
Leadership media campaigns around the issuance of sovereign certificates,
Training for CreaPOLES stakeholders,
Support for plebeian patent offices and their countries of origin,
Continuous improvement of the digital platform,
The success of authentic products in the world market, supported by public opinion and creative valleys.

The IcF has set the goal of having 15,000 unicorns participate in the CreaFREE ecosystem by 2030 in collaboration with incubators. After receiving originality certification for their CreaBOOKs, they will sell products and services with the Responsible authenticity Mark (RaM). Like all startups that have signed certification agreements, they will be insured by the CreaSURE organization.

With the minimum value of a unicorn of one billion euros, these 10,000 unicorns will represent a total value of at least 15 trillion euros, with sales of over 5 trillion euros. This means that at least 4% of the world’s service production will be authentic and environmentally friendly products covered by RaM.

To benefit from the mutual creation insurance, they will have to contribute at least 0.5% of their turnover, according to the contract signed during the first certification. In this way, the revenues of the CreaSURE will amount to at least 25 billion euros per year by 2030.

The 20% royalty for the IcF license will not be less than 5 billion euros. With a Price Earning Ratio (PER) of 10, the final value of IcF will be 50 billion euros by 2030. In addition, other royalties and commissions from other IcF activities will be collected: registration, editorial advice, certifications, defense of CreaBOOKs, etc.

In February 2023, the M4 mathematical function of the multiplier can be applied to IcF seed funding calls, considering that:
CreaBOOKs have been timestamped, registered, and uploaded to the CreaFREE platform,
The first CreaBOOK beta tests have been performed,
The IcF statutes will grant the company ownership of the CreaCORN and CreaFREE standards for at least 70 years,
The target for terminal value is expected to be achieved within the next 7 years.
At the beginning of the seed phase, the value of the IcF is:

M4 = Foundation value
(Unicorn Revenue * 0.5% Contribution * 20% Royalties) / 400
50 billion euros / 400 = 125 million euros

Illustration 10. IcF Value After the Foundation Phase

With a split of 20% for investors, 20% for contributors and option managers, and 40% for creators, the plan is to raise approximately 50 million in stages to fund the end of the seed and pre-scale phases.

Assuming 7% participation in the same unicorns, incubators will:

Capital Value of Incubator Holdings
(Total Unicorn Value * Incubator Equity Share)
Total participation: 15,000 * 7/100 = 1,050 billion euros

Illustration 11. Incubators’ Holding in 2030

 

This results in an average equity share of 1.050 billion per incubator.

In comparison, Y Combinator has supported 3,000 startups to date. The total valuation of these companies is estimated to be over $65 billion today. Considering that Y Combinator typically takes an average of 7% equity in these companies, the current value of its holdings is at least $4.55 billion. With the rapid rise in the number and value of unicorns, its performance is likely to have significantly improved by 2030.”

To do:

  • Estimate the market trends relevant to your creation and the projected revenue.
  • Estimate the value of your startup at its founding stage, as well as its potential final value.
Remark: Congratulations, you have gathered the necessary elements to assess the potential of your creation. To validate your statements and give them a certain date, we will now proceed to the authentication part of your CreaBOOK.