Valuation of early stage high-tech start-up companies
Valuating start-ups, especially at early stages, is a challenge given the lack of historical data and many uncertain factors about the future. This article presents a methodology for the valuation of early stage start-ups that we have proven in practice. The risk linked to a start-up is expressed th...
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| Veröffentlicht in: | International journal of business 2013-06, Vol.18 (3), p.216 |
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| creator | Festel, Gunter Wuermseher, Martin Cattaneo, Giacomo |
| description | Valuating start-ups, especially at early stages, is a challenge given the lack of historical data and many uncertain factors about the future. This article presents a methodology for the valuation of early stage start-ups that we have proven in practice. The risk linked to a start-up is expressed through an individual beta coefficient as important component of the discounting factor within a discounted cash flow (DCF) valuation based on the data in a business plan. Core of this methodology is the development of an evaluation framework for the individual adjustment of the beta coefficient that is applicable to early stage start-ups. This was shown by applying the methodology to 16 early stage start-ups in the fields of biotechnology, nanotechnology, medical technology and clean technology, which provided an easy-to-handle and comprehensible comparison of different investment options for early stage investors. |
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| identifier | ISSN: 1083-4346 |
| ispartof | International journal of business, 2013-06, Vol.18 (3), p.216 |
| issn | 1083-4346 |
| language | eng |
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| source | EBSCOhost Business Source Complete |
| subjects | Business planning Business plans Business valuation Capital assets Capitalization Cash flow forecasting Discounted cash flow High tech industries Investors Mason, C.M Startups Studies Valuation |
| title | Valuation of early stage high-tech start-up companies |
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