IDEAS home Printed from https://ideas.repec.org/a/bla/jacrfn/v33y2021i3p125-129.html
   My bibliography  Save this article

The Seven Deadly Sins of Start‐Up Valuation

Author

Listed:
  • Franck Bancel
  • Bruno Martinaud
  • Henri Philippe

Abstract

Valuing start‐ups is different from most other valuations because the information available on start‐ups is limited, the business models are usually not yet stable, and maturity may be far off. In this setting, it is difficult to identify listed assets or comparable transactions, much less provide credible forecasts of cash flows. Despite such difficulties, the value of the shares in a start‐up can be estimated by applying the standard financial framework while adapting the valuation methodology to the context. To help practitioners value start‐ups successfully, the authors highlight “seven common errors to be avoided” from their practical experience.

Suggested Citation

  • Franck Bancel & Bruno Martinaud & Henri Philippe, 2021. "The Seven Deadly Sins of Start‐Up Valuation," Journal of Applied Corporate Finance, Morgan Stanley, vol. 33(3), pages 125-129, September.
    • Handle: RePEc:bla:jacrfn:v:33:y:2021:i:3:p:125-129
    DOI: 10.1111/jacf.12469
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jacf.12469
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jacf.12469?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jacrfn:v:33:y:2021:i:3:p:125-129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1078-1196 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.