NEA valuation, page-11

To add to

Great analysis. Just wanted to add that one of the reasons NEA is seen far more favourably now compared to a few years ago is the track record of management.

The product & technology that NEA has is likely not in dispute by anyone. When valuations are as bullish as they currently are, upside can only come from continued growth, and thus the primary risk is execution. So the Q investors have to ask is can they execute?

If you go back to November 2016 when NEA did their raising there was quite some angst on these very forums as to why NEA said (at the 2016 AGM) they didn't need additional capital, yet they immediately went out and raised $20m at 70c. There were a lot of doubts as to how well that money would be spent.

Almost 2.5 years later NEA have delivered everything they promised. Every half/full year presentation they say what they're going to do, then 6 months later we see the results. They've been consistently transparent: about ACV expectations, new products etc and we get a nice Analyst Pack to explain the numbers.

For a new investor this sort of track record is not obvious unless you go back and trawl through all of the past presentations but it's one of the key reasons NEA has "suddenly" become a market darling.