Abstract

The aim of this research is to propose a methodology for the valuation of start-ups, incorporating prospective and behavioral factors with traditional risk analysis. The proposed methodology is useful for the entrepreneur to undertake their new business with their own capital as well as in the case that angel investors are involved. The main finding is that it is possible to build a consistent methodology that makes entrepreneurs conscious of their cognitive biases, allowing them to value the business idea with a multidimensional approach. It is important to consider that the values assigned to the parameters of the critical variables, by scenario, must be feasible and reasonable, since otherwise it could fall into a possibility of unattainable results. The resulting methodology represents an alternative that integrates motivational and strategic aspects, becoming a useful tool in the decision-making process of the entrepreneur as well as for angel investors, bridging the gap between their valuations.

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