EconPapers    
Economics at your fingertips  
 

Risk-Based New Venture Valuation Technique: Win-Win for Entrepreneur and Investor

Vara Whittington P. (wvara@ufl.edu)
Additional contact information
Vara Whittington P.: Center of Entrepreneurship Innovation, University of Florida, Gainesville, FL 32611-7168, USA

Journal of Business Valuation and Economic Loss Analysis, 2013, vol. 8, issue 1, 1-26

Abstract: Abstract: New ventures that lack a financial history and have a future that is not only unknown, but may be unknowable pose unique problems to the investment community. Since conventional valuation techniques do not work in these cases, entrepreneurs and investors resort to techniques that rely more on art than finance. Although a reduction in information asymmetry usually leads to an agreement between two parties, the methods the entrepreneur or investor use to value a new venture tend to increase this information gap. The author proposes a logical, systematic risk-based new venture valuation technique that reduces information asymmetry during this process.

Keywords: valuation; investment; start-ups; venture finance; real options (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/jbvela-2013-0007 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:jbvela:v:8:y:2013:i:1:p:1-26:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/jbvela/html

DOI: 10.1515/jbvela-2013-0007

Access Statistics for this article

Journal of Business Valuation and Economic Loss Analysis is currently edited by Bradley T. Ewing and James J. Hoffman

More articles in Journal of Business Valuation and Economic Loss Analysis from De Gruyter
Bibliographic data for series maintained by Peter Golla (peter.golla@degruyter.com).

 
Page updated 2024-12-28
Handle: RePEc:bpj:jbvela:v:8:y:2013:i:1:p:1-26:n:2