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The business angels’ perspective on evaluating early stage start-ups

Gostincar, Grega LU and Sinnegger, Stefan LU (2015) ENTN19 20151
Department of Business Administration
Abstract
The process of evaluating early stage start-ups is often considered a great challenge from the perspective of a business angel. The main concern of this study is to investigate the methods that business angels use to evaluate early stage start-ups and which, if any, methods are used for the final valuation. The lack of previous theoretical research on the valuation methods of business angels and early stage start-ups, is the main reason for analysing the topic. The aim of our study is to identify a common framework that business angels use for evaluating start-ups in the early stages. In addition, the research focuses on the detection of influential factors and methods of the different process phases. This study provides in-depth research... (More)
The process of evaluating early stage start-ups is often considered a great challenge from the perspective of a business angel. The main concern of this study is to investigate the methods that business angels use to evaluate early stage start-ups and which, if any, methods are used for the final valuation. The lack of previous theoretical research on the valuation methods of business angels and early stage start-ups, is the main reason for analysing the topic. The aim of our study is to identify a common framework that business angels use for evaluating start-ups in the early stages. In addition, the research focuses on the detection of influential factors and methods of the different process phases. This study provides in-depth research using a qualitative approach and verbal protocol analysis based on a fictional study case that was administered in four interviews with business angels from Sweden. The result of the study is a developed framework which business angels use when evaluating early stage start-ups. The study presents a set of factors that influence the evaluation process and specify certain models that are applicable for valuating early stage start-ups. (Less)
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author
Gostincar, Grega LU and Sinnegger, Stefan LU
supervisor
organization
course
ENTN19 20151
year
type
H1 - Master's Degree (One Year)
subject
keywords
valuation methods, evaluation framework, early stage start-ups, financing, Business angels
language
English
id
7410390
date added to LUP
2015-06-25 14:46:35
date last changed
2015-06-25 14:46:35
@misc{7410390,
  abstract     = {The process of evaluating early stage start-ups is often considered a great challenge from the perspective of a business angel. The main concern of this study is to investigate the methods that business angels use to evaluate early stage start-ups and which, if any, methods are used for the final valuation. The lack of previous theoretical research on the valuation methods of business angels and early stage start-ups, is the main reason for analysing the topic. The aim of our study is to identify a common framework that business angels use for evaluating start-ups in the early stages. In addition, the research focuses on the detection of influential factors and methods of the different process phases. This study provides in-depth research using a qualitative approach and verbal protocol analysis based on a fictional study case that was administered in four interviews with business angels from Sweden. The result of the study is a developed framework which business angels use when evaluating early stage start-ups. The study presents a set of factors that influence the evaluation process and specify certain models that are applicable for valuating early stage start-ups.},
  author       = {Gostincar, Grega and Sinnegger, Stefan},
  keyword      = {valuation methods,evaluation framework,early stage start-ups,financing,Business angels},
  language     = {eng},
  note         = {Student Paper},
  title        = {The business angels’ perspective on evaluating early stage start-ups},
  year         = {2015},
}