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In last year’s edition of our annual cryptocurrency predictions we predicted the following. We want to openly indicate what went well and what not in last year’s cryptocurrency predictions.Institutional money as the catalyst for the crypto bull market. It turned out that the crypto bull market continued, but it was not yet institutional capital driving it. This process of institutional money pouring into cryptocurrencies is going slower than expected.Bitcoin’s upside capped is what we said a year ago. This might still be the case longer term but for now it appeared that Bitcoin was the cryptocurrency that was most solid in its retracement in the 2nd half of 2019. Most cryptocurrencies fell back to their early 2019 lows while BTC is ending the year almost twice as high as its open.XRP becomes the new BTC. Here it becomes very interesting. XRP clearly is the cryptocurrency with most traction in real life. In terms of ADOPTION there is not any other cryptocurrency that comes even close to what XRP is doing, at scale. However, the XRP price has not reflected this potential. Admittedly, a big disconnect between the XRP price and our expectation a year ago.Only added value cryptocurrencies would do well. This appeared to be partially true. It is true that no value add cryptos did outperform, and are facing existential risks (rightfully so). However, several value add cryptos are ending the year on a not so positive note neither which is due to the crypto bearish bias in the 2nd part of 2019.Blockchain implementations would accelerate. This certainly appeared to be true, even though the number of crypto enabled blockchain applications were not the majority.So with all this in mind what is in store for 2020? We feature 7 cryptocurrency predictions for 2020 in this article.There are so many cryptocurrencies that people do not tend to pay much attention to. Investing in these cryptocurrencies would bring about maximum profits and also would bring less worries in the fluctuations of their prices as they have really stable prices. Cryptocurrencies like ripple,monero,dash,binance coin,bitcoin cash,bitcoin sv, litecoin,ethereum and so many more can be invested on the platform(www.libraforex,io) where you get from 25% to 100% ROI on whatever is invested and also offering cloud mining services.Cryptocurrency Predictions for 2020: Giant Secular Bull Market ContinuesBitcoin remains the leading indicator for the crypto market. According to its long term chart BTC looks to be building a long term base.The long term chart suggests that the pace of the ongoing bull market #3 might slow down compared to the previous bull market #2. Note the emphasis on the word ‘might’. It is not a given, but it might happen.Based on how Bitcoin will behave around current price levels we might need to adapt our investing strategy: from buy-and-hold to a combination of holding for the long term with medium term trades. How, how much, when … all these questions are what we solve in our premium cryptocurrency investing service. We guide our members in a way not anyone else is doing.Presumably Bitcoin needs additional time before moving to a state of accelerated rise. That’s in our opinion the message of this chart.All in all the message of the long term BTC chart is this: the grand secular Bitcoin bull market is still in place, and not going anywhere in the foreseeable future. Similarly, the grand crypto bull market is still intact, in 2020 and beyond.Cryptocurrency Predictions for 2020: ‘Risk On’ Markets Supportive Of Crypto Bull MarketThis may seem like a not very intuitive prediction but we feel strong that this will be a relevant as well as an important one for 2020.In order to understand this point we have to take one step back. BTC is increasingly connected to the rest of financial markets which is because of the introduction of futures. More than any time before are large traders able to switch their capital from non crypto markets (like stocks, currencies, commodities, gold) to BTC, in two directions.Because of this we believe crypto markets are more subject to the tactical risk cycles.As per our annual forecasts we believe that a new RISK ON cycle has started in November of 2019: Small Caps Break Out as well as our Dow Jones forecast.The likelihood of a continued bear market as well as big crashes in BTC in 2020 are decreasing expotentially.Cryptocurrency Predictions for 2020: Institutional Capital Pouring Into Crypto InvestmentsAs said in the introduction the capital from institutional investors came into the crypto market but at a lower pace than expected. Institutional investors need to manage their crypto investments in a different way than the retail public, and have different legal obligations as well as specific restrictions and requirements.Case in point: Bakkt took almost a year longer than planned to launch to the public. Yes they are growing fast, but started from scratch.According to this Coindesk analysis there is a slow learning curve among institutional investors. This quote says it all:The reality is that institutional investors are slowly getting comfortable (learning), and this process will continue to take time. Despite educational progress through 2019, some institutions are wondering if it’s too early to be investing in this space, and whether they can potentially get involved in investing in digital assets in the future and still generate positive returns, but in ways that are de-risked relative to today. Despite a few other challenges imposed on larger institutional investors with respect to investing in digital assets, true believers inside these large organizations are emerging, and the processes for forming a digital asset strategy are either getting started or already underway.Institutional capital will make a difference, but it will take some more time to reach the tipping point. It may start in 2020 but also in 2021. One thing is sure: in 2020 there will be an acceleration when it comes to institutional capital inflows.Cryptocurrency Predictions for 2020: Integration with Real World ApplicationsWe will increasingly see integrations between the ‘real world’ and the crypto world.If you think about it so far the crypto and blockchain world has been pretty isolated. A world that stands on itself.We believe that 2020 will be a pivotal year in which blockchain / crypto moves closer to the real world. Especially in the enterprise world we will see ways to open up real life data integrations with blockchain / crypto applications.Case in point: Chainlink is doing amazing work in this field. The list of Chainlink’s partners is pretty impressive, and it illustrates our point. Companies like Google, Alibaba, Oracle, etc are interested to connect data applications ‘offchain’ to the blockchain through Chainlink.Cryptocurrency Predictions for 2020: Adoption Will Beat Non AdoptionAdoption is the what will make the difference ultimately, also in cryptocurrency prices.However, we did not see an adoption driven price discovery mechanism in 2019. And given the evolution of the crypto market it will not be the key driver for all cryptocurrencies neither in 2020.The one exception that might start making a difference is XRP. The adoption of XRP in transactions starts becoming really significant. The demand for XRP is growing significantly. With the partnership between Ripple and Moneygram (one of the largest money transfer services worldwide) it is clear how fast the volumes are growing that XRP is transferring from one currency into another currencyThere are only a handful of other cryptocurrencies that come close to similar signs of growing adoption. But 99% of cryptocurrencies show no sign of adoption whatsoever. Sooner rather than later they will disappear.Cryptocurrency Predictions for 2020: XRP Consolidates in a Wide Rounding Bottom FormationFrom a price perspective the breakdown of XRP was an important event of 2019, which came half a year after the amazing crypto rally of April/June.We believe that XRP is setting a giant rounding pattern. A major rounding bottom or ‘saucer base’ in more technical terms. Eventually this will resolve to the upside, and we believe that XRP will set a major bottom in the first half of 2020 before starting its steady rise.Our longstanding price target of 20 USD is still valid. XRP will not trade at 20 USD in 2020 obviously, that’s a bit too ambitious, but it will set the stage in 2020 for an accelerated rise later down the road.Cryptocurrency Predictions for 2020: Ripple’s Swell to set the Bar for AdoptionLast but not least we believe that Ripple’s annual event ‘Swell’ will increasingly set the bar for adoption.The type of conversations and evolution that was presented at Swell in 2019 is amazing. Again, no other cryptocurrency comes close to achieve what Ripple is doing, which in turn helps realize the full potential of the XRP ecosystem.Cryptocurrency Predictions Log: Weekly updated throughout 2020This is a weekly log to keep track on our crypto predictions for 2020. We update this log on weekly basis with short bullet points to highlight whether the crypto market in 2020 is developing according to our cryptocurrency projections outlined in this article.First week of January: we see encouraging signs on the BTC chart as the leading indicator for the crypto market. The odds favor a reversal to take place which should help BTC as well as the entire cryptocurrency market tremendously.Second week of January: a great start of the week for the price of BTC and other cryptos. They are rising along with BTC. We couldn’t imagine it better than this, great start of the year 2020.

We’re heading towards a more decentralized world. Blockchain (or the future evolution) and cryptocurrencies will be used by most businesses, most people, and, eventually, most governments.This technology (decentralized consensus) will underlie many of our future systems as we’ve created a fundamentally new way to establish trust globally, leading to great leaps in our social scalabilityTechnology by its nature is morally neutral, which means blockchain has the tremendous power to both help and hurt our future society. Hopefully when the dust settles, this revolution leads to a less violent, more free, open world.A lot of opportunities are opened to cryptocurrency holders where they can double their cryptocurrency within few days by investing legitimately in platforms like www.coastminers.tech where they can get double of their investment in 7 days without losing them(thank me later).Predicting on a shorter timescale (let’s say by 2020) presents unique challenges. The shorter we make our timescale, the harder it becomes to predict the future state. Short term, we’re exposed to temporary risks that will not necessarily matter in the inevitable long term, such as temporary technology setbacks, geo-political events, risks of individual leaders, etc.In this article we’re going to examine the future on a short-term basis, and predict which projects will be in the top 10 by market cap in 2020.Predicting Market Dominance by 2020I’m going to stack rank the top 10, but don’t get hung up with the order. Let’s not waste time debating the relative position of any project on this list.Without future ado, here are my predictions for the top 10 projects by market cap in 2020:Bitcoin (BTC)NEOEthereum (ETH)Litecoin (LTC)Stellar Lumens (XLM)WaltonChain (WTC)tZERO (TZRO)Ripple (XRP)QASH#1 Bitcoin (BTC)bitcoin will have the largest market cap by 2020 but will continue to lose market dominance. Historically, Bitcoin has slowly lost market dominance since 2013 as shown above in the chart from Coinmarketcap.What will drive BTC’s value? Institutional money, increased adoption driven by Lightning Network, its position as the global crypto reserve currency, and a potential global financial crisis.The Inevitable Flood of Institutional Money Is Not A Matter of “If,” It’s A Matter of “When”On April 12, $250 million of BTC was purchased over a 1-hour period. Institutional investors are smart and would almost certainly wait for a pull back before purchasing. With BTC reaching at a 70% discount from ATH, could this be the start of the flood?The Bitcoin Lightning Network Beta Is Live On The MainnetIt’s growing steadily but nowhere near ready for mainstream adoption. However, after another 2 years of development, lightning network will add immense value to the Bitcoin ecosystem. We could see mainstream applications (lApps) being launched on Lightning, major online retailers accepting Lightning payments, and a variety of micro-payment solutions being realized.A Global Financial Crisis Leads To An Increase In Bitcoin ValueThe ratio of debt to GDP has increased in all advanced economies since 200. You would hope we’d learn our lesson from the 2008 financial crisis, but in fact the opposite is true.Are we headed for another global financial crisis? All signs point to yes, although predicting the timing is notoriously difficult. Global financial troubles will accelerate the transition to a crypto future and Bitcoin will absorb the highest percentage of capital.Even if we don’t see a global financial crisis by 2020, we will see continued capital flight from countries with unstable fiat currencies into a more sound money (bitcoin). We’ve already seen this play out with Argentina, venezuela and cyprus. China is concerned with capital flight risks leading to heavy-handed regulations on the crypto economy.What About Bitcoin Cash?In a Darwinian sense, I support alternative currencies competing for dominance. Bitcoin and bitcoin cash are pursuing different strategies in regards to scaling. Over time we will see which solution (maybe both?) has merit.BCH has potential to win the merchant payment space, however over time I believe Lightning Network will dominate. Long-term, the Bitcoin Cash “big block” strategy is not the best solution to maintain decentralized and censorship resistant.For these reasons, I foresee Bitcoin Cash continuing to lose relative market cap and sliding out of the top 10.#2 NEORevolutionary technology takes a long time to build and we’re largely still in the infrastructure phase. This means 95% of current applications will fail. We first need to build the foundational infrastructure in order for future applications to succeed.Platforms will continue to gobble up the majority of the value for years to come which is why investing in platforms is one of the most obvious crypto trends for 2018This sentiment is loud and clear with my top 10 list. No “dapps” here, folks. Instead, everything on the list could be considered as infrastructure (Bitcoin and Litecoin included).NEO Will Be The Leading Platform In Two YearsThere are many reasons to like NEO. They have a devoted community, A layer-2 scaling solution (Trinjty) is being built, many upcoming ICOs will add to the already robust ecosystem, and NEO is cozy with the Chinese government.NEO is unapologetically staying centralized (and censorable) for the near future until the ecosystem is mature enough to release into the wild. While I (and many others) disagree with NEO’s stance, it is the China way, and it’s undeniable that centralization is more efficient in some instances.We could see geopolitical tensions between the US and China heat up which may incent China to go all in on crypto. What does a state-sponsored crypto future look like in China? No one really knows, but the NEO ecosystem is prepared to be the major public infrastructure. Sure, we might see a “CrypoYuan” being created, but I that will only add value to NEO.EOS will become the #1 operating system for enterprise applications in the west.If we’re going to see a decentralized Uber, Facebook, or Twitter—they’re going to be built on EOS.Outside of China, EOS will handle the lion’s share of the enterprise scale applications in the west leading to a massive increase in value. EOS is a high performance blockchain capable of scaling to handle enterprise-level volume. This scalability is achieved both through the consensus algorithm Delegated Proof of Stake (DPoS) and by utilizing theoretically infinite parallel chains.EOS also offers developers on Ethereum the ability to copy and paste their projects onto the EOS network. This will make it very easy for Ethereum projects to switch EOS.The future is bright for EOS. By mid-2018, their mainnet will launch with a massive scalability advantage, a well-funded rockstar team, and the ability to port projects from ETH onto EOS.Not to mention, EOS owns over a billion dollars’ worth of ETH tokens. They can dump these on the market whenever they choose, dropping the price of ETH and hurting confidence in this fickle market.#4 Ethereum (ETH)ETH will maintain relevance but will lose market share to EOS.Ethereum is in a very challenging position. ICOs are being cracked down, the future of scaling is unknown, and “blockchain 3.0” projects like EOS are nipping at their heels.Ethereum still has a massive lead over all other platforms in terms of network effect. But alliances can change quickly as the Ethereum network is not capable of handling the transaction load needed to run dapps. If you’re a developer, you can either wait for Ethereum to (hopefully) improve on scalability or you can jump to EOS where your application can perform as needed.I’ll be watching the race unfold: Can Ethereum improve on scalability before EOS and other platforms take too much market share?#5 Litecoin (LTC)Wherever Bitcoin goes, little brother Litecoin follows.I’m confident litecoin will maintain market dominance due to inherit synergies (shared code) with Bitcoin, the network effect, and the compelling story of Litecoin being the silver to Bitcoin’s gold.It’s generally agreed that Bitcoin alone cannot serve as a the global payment network. This makes an easy case for Litecoin to share the network load. Litecoin will be completely interchangeable with Bitcoin via atomic swaps on the Lightning Network.#6 Stellar Lumens (XLM)XLM will become the top platform for enterprise-level payment infrastructure.Payments and banking infrastructure are an obvious use case for cryptocurrency. In this space, there are currently 2 main players: Ripple (XRP) and Stellar Lumens (XLM). At the time of writing, XRP has over 5x the market cap of XLM.By 2020, I predict this to be the inverse. XRP will maintain its dominance in the big bank settlement space, but everything else will go to XLM.Here are some areas where I see XLM winning market share:Banking the unbanked (OMG is a contender here)Remittance payments (a $500b industry ripe for the taking)ICOs on Stellar (We’ve already seen Mobius, Kin, and Smartlands move to Stellar)Cross-border payments (not including the big banks)Stellar as a platform for decentralized exchanges such as SDEXThe use case for a payment network platform like Stellar is crystal clear. If Stellar can continue to innovate and build out its ecosystem, it will slowly but surely exceed Ripple in market cap by 2020.#7 WaltonChain (WTC)WTC will become the go-to platform for enterprise-level IoT.One of the most obvious use cases for blockchain is supply chain management. VeChain is currently leading this space in terms of market share, but waltonchainwill dominate the space in the long run.WaltonChain solves the problem of how to incorporate physical assets onto the blockchain automatically with tiny chips. Through patented RFID technology, WTC can manufacture and insert their chips into pretty much anything. Combining hardware and software makes WTC more durable than other blockchain projects.WaltonChain is starting with a few specific “no-brainer” industries as a proof of concept before going into full-on production mode. However, they’ve already shown massive efficiency gains in the retail space. So far, WTC has announced “child chain” projects to manage shipping and logistics for a port in China, smart agriculture in China, power a smart city in Korea, among others.I won’t be surprised if WTC partners with Samsung, Alibaba, or another titan of industry.WTC has one of the longest roadmaps you will find and won’t be fully operational for mainstream applications until 2020, just in time for this arbitrary deadline we created for this article. Coincidence? I think not.#8 tZERO (TZRO)tzero will become the NYSE of digital assets.The case for tokenizing all financial securities (stocks, bonds) and many real-world assets (real estate, art) is becoming quite clear. Tokenized securities provide several benefits over traditional financial products such as efficiency gains leading to decreased fees, reduced risk of financial manipulation, and increased access to investors since anyone with an internet connection can participate.You thought the ICO boom of 2017 was big? Just wait until traditional companies start tokenizing their assets.tZERO will become the New York Stock Exchange of Crypto making for a very valuable token by 2020.The tZERO platform is directly targeting Wall Street profits which is very ambitious. Luckily they have the team to pull it offA few notable team members include:Patrick Bryne – CEO of OverstockJoe Cammarata – Pioneered NASDAQ market orders and the first off-exchange electronic trading systemBrock Pierce (advisor) – Chairman Bitcoin Foundation, Founder of EOS,Anthony Di Lorio (advisor) – Co-founded Ethereum, CEO of JaxxPeter Diamandis (advisor) – chairman of X Prize Foundation, Co-founder of Singularity Univesrity, NY Times bestselling authorGiven the enormous potential market size and the obvious benefits for both issuers and investors, if tZERO wins the tokenized securities space, they will be massive.#9 Ripple (XRP)XRP will dominate the institutional banking infrastructure.Much of the crypto community dislikes the ethos of Ripple (myself included) — however, just because the purists hate something, doesn’t mean it will go away. In fact, the opposite is true as Ripple might partner with Western Union and they may even replace the SWIFT network.I believe XLM will win the remittance market in the long run; however both Western Union and Moneygram are currently considering using XRP.#10 QASHQASH will be the leading platform for both retail and institutional investors trading crypto.While we have seen a meteoric rise of the centralized exchanges such as Binance, the exchange landscape will change dramatically by 2020.Fiat gateways will be increasingly more prolificInstitutional investors will be trading cryptoDecentralized exchanges will be usable for retail investorsRight in the middle of this transition is a massively undervalued project,QashBy 2020, QASH’s LIQUID platform could be the leading platform for both retail and institutional investors looking to trade crypto. This is an ambitious goal, but they’re positioned well and they have the team to pull it off. Let’s take a look under the hood.Their main offering is the LIQUID platform which aggregates all major exchanges into a single trading platform, combined with financial services such as prime brokerage.A key feature of the LIQUID exchange is The World Book which will aggregate all major exchanges in the world into a unified trading platform. If this is done right, LIQUID will provide a single massive order book where users can trade the entire crypto market and get in and out of local fiat currencies.This includes emerging fiat currencies from African and SE Asian nations which currently do not have fiat-crypto gateways. By allowing these new markets to easily acquire cryptocurrencies, we’ll see an increase in global liquidity.Imagine a world where no one will have to send BTC/ETH from exchange to exchange in order to trade alts.Institutional money will never use decentralized exchanges. I’m certainly in favor of using decentralized exchanges to mitigate the custodial risks of centralized exchanges. But do you really think Goldman Sachs traders are going to be fiddling around with etherdelta?Banks are under regulatory pressure which forces them to work exclusively with licensed businesses that follow all AML/KYC requirements. The QASH team has a deep history in the fintech space and will have the necessary banking licenses.Lastly, the LIQUID platform is suited to handle banking-level order management and matching systems by processing millions of orders per second.QASH is more than just an exchange.They are creating their own blockchain allowing developers to create applications leveraging the QASH token. The team also mentioned there will be some element of PoS paying dividends to holders.If the team at QASH can pull it off, there is no doubt that they will be a top 10 project by 2020.Final ThoughtsBy 2020, BTC and LTC will dominate the pure currency market with the help of the Lightning Network. NEO and EOS will surpass ETH in the platform space, billion-dollar enterprises will trust their supply chain data on the blockchain, and institutional money will flow into crypto via trading both digital assets and tokenized securities.That being said, anytime you’re dealing with the future there’s a distinct possibility of being completely wrong. I wouldn’t be surprised if one or more of these projects fails or a new player emerges that changes the landscape entirely.

(TL;DR) I will try to outline how it is possible to forecast the demand without historical performance information. Please take into consideration that it is also a learning process for me and hence inconsistencies and alternatives can be identified and applied.A major inspiration and a wealth of knowledge comes from Aswath’s Damodaran’s book The Dark Side of Valuation: Valuing young, distressed and complex businesses. For more detail do refer to his book, I find it very fascinating and helpful once dealing with uncertainties in forecasting demand and valuing early-stage technology companies.Here a method of top-down approach is described. The top-down approach starts by estimating market for a product or service and then boiling down to the numbers. There is also a bottom-up approach, where it is initially considered estimating the investment in capacity and then building up towards revenues/cash-flows. Here we go.Estimating potential market for product/service. Two main points to consider: (1) defining the product/service offered by the firm, (2) estimating the market size.(1) If the product or service of the firm is defined narrowly, the potential market will be constrained to the narrow definition and naturally be small. For example, if we are to define Uber as a car-sharing company, the market might be way lesser, compared to if we define Uber as a fleet management and logistics company, expanding on the broader attainable market definition. (I am using Uber purely as an example). Naturally, the definition of the product or service at an early-stage can only be sometimes narrow, however, building the company infrastructure and operations over time allows one to scale the definition, hence increasing the market potential.(2) Having defined the product or service, we now are faced with a challenge to define the market size. For a startup that is entering a mature market its way easier to source data from trade publications or forecasting services. Many firms specialise in tracking industries globally, from automotive, to aerospace, to enterprise software. An example of such firm can be Gartner. Now, with available industry data you have the numbers for what happened and what is happening in the market now, but you need to look into the future as you are forecasting the demand (revenues) of the market. Mostly the forecasts are available with the same firms, other times one can refer to industry reports from McKinsey, KPMG, Accenture, etc.Estimating market share. Once we have the estimated overall market size (TAM) total addressable market, and the changes happening within that market it is likely you are in need to estimate what you can capture with the analysed startup within that market. Such estimates will reflect on the quality of the product/service offering as well as how it measures up to competition. Naturally, it is a good practice to identify the key competing players within this market and establish where the startup will be valued when it enters the established market. Herein we face two points of consideration: (1) the strength of the team and its ability to deliver on the promise and (2) resources that the startup needs to draw on to achieve the desired fit within the market with its product/service.(1) Many entrepreneurs might have excellent ideas, but not enough or limited experience and knowledge to bring the idea to commercial success. Oftentimes, investors reflect heavily on the domain expertise and prior company building experience when evaluating the startups and choose to partner with the best teams on the market that are working on a novel or innovative technology. This is by far the trickiest of the elements - the team. Everything else you can forecast, guesstimate or control - you cannot control the human element within the startup, hence the risk and need to find teams who are truly committed to what they are building.(2) Having too optimistic forecasts can end up in startups raising huge amounts of capital and burning it through without achieving the desired results. It is critical to acknowledge how much capital is needed in order to suffice the capacity of the product being built and the marketing expenditure required to market the product/service to the market. Some products/services will be very capital intense, some will be lesser. You are in control of your marketing and sales related expenditure, and ultimately, if the product/service you are building fills the need of consumer you will not have high marketing/sales related expenditure. Way higher cost will be associated with talent.Estimating operating expenses/margins. As startups can rack up huge revenues it is not necessarily representative metric of the earnings, hence investors might be reluctant to fuel you with capital if the firm cannot deliver healthy earnings. Here, especially in early-stage tech companies it is very difficult to estimate operating expenses due to the lack of historical facts and uncertainty. Moreover, early and later stage technology companies tend to have very high operating losses at the time of estimation. For example, Amazon, Uber, Airbnb (recently turned to profit), are all cases of huge operational expenditure, top-line revenues but lengthy time to profit. It is possible, again, to break down the estimation of operating margins in two subsets: (1) estimating the operating margin in the constant state and (2) estimating how the margin will evolve over time.(1) Steady state margin estimation. This can be achieved by reflecting on the competition we identified as key in the market and analysing their margins. Because these firms are established and are already in the mature market, they tend to have less volatile operating margins, it can serve as a good benchmark to aim for when starting to build the startup.(2) Evolution of the margin. The path to profitability is oftentimes very rocky and lengthier than most assume, for numerous internal and external reasons. Usually, fixed costs and competition in the market has a lot to do with such rocky path to profitability as well as consumer willingness to pay a certain price premium for your product. The level of detail you are estimating can vary largely at this stage, should you go more in-depth, you will be estimating individual operating expenses per items as labor, raw materials (if any), sales & marketing related expenditure, etc. As a rule of thumb, if you are having tough time estimating revenues and expenditures in year 1, you will likely have very difficult time estimating costs and margins in years to come. In valuing (estimating) early-stage technology companies sometimes less detail leads to more precision, as well as knowing a few key metrics of your business model that truly matter and optimising those metrics.Estimating investment to accelerate growth. Top-line growing revenues and healthy margins do not come for free in any competitive businesses, let alone technology startups. It is critical to estimate how much capital the firm is to re-invest in order to generate the expected growth. Should you have a manufacturing firm, your re-investment would likely to be concentrated towards increase and efficiency of production capacity. In technology firms, not only the re-investment includes R&D but also new patents, human capital, IT/software expenditures, researchers, etc. It is important to pay close attention to such re-investments, because reinvestment requires cash-outflows and hence affects the bottom line, which is the cash that is ultimately delivered to your investor. Moreover, and this especially applies to early-stage tech firms, reinvestment often results in negative cash-flows, which ultimately have to be covered with new capital infusions/investments. This results in existing equity investors dilution of ownership, especially when new investors come in, or are invited to make new investments to keep the business operations running.Computing tax effects. Computing tax effects in firms is usually a simple multiplication of expected pre-tax operating income by tax rate. However, diving deeper oftentimes firms are faced with which tax rate to use - marginal or effective? Early-stage technology companies generally, but not always, face challenges because they have not yet paid taxes, since they generate no earnings, hence there is no effective tax rate. Another challenge, is that losses made in the past are expected to create future operating losses as well, and can be used to carry forward and shelter positive earnings in the future. One way to deal with this would be to cumulate them as they are expected to occur over time and keep track of the operating loss over time. Once you approach first positive years of earnings it can be drawn on these operating losses and not paying taxes. Once the operating losses are exhausted it is possible to move to marginal tax rate. This is an ok solution, but an alternative would be to use the average effective tax rate paid by the healthy firms within the sector your startup is operating.Hope this sheds at least a little bit of light on the question you are trying to answer. Happy forecasting and estimating!