Abstract
The valuation of early-stage ventures represents a difficult and often subjective task. In an attempt to operationalise and objectivise valuation of early-stage ventures, thereby reducing uncertainty, we analyse non-financial determinants of early-stage technology venture valuation through means of an analytical hierarchy process (AHP) and a choice-based conjoint analysis (CBC). To achieve meaningful results in a challenging research setting, triangulation methods were applied. The data obtained from 75 venture capital investment professionals enable us to quantify the relative importance of relevant determinants and derive their impact on valuation. Our analysis shows that entrepreneurial spirit is considered the most important determinant for venture capital investors and a key driver of early-stage technology venture valuation. Next, a strong unique selling proposition (USP) impacts value significantly, followed by intellectual property and market growth. Further, our results demonstrate that valuation determinants do not vary significantly by investor type, i.e., business angel or venture capitalist.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Entrepreneurial Venturing
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
