Valuation of start-up internet companies
by Thomas Hering, Michael Olbrich, Martin Steinrucke
International Journal of Technology Management (IJTM), Vol. 33, No. 4, 2006

Abstract: The valuation of start-up companies is of importance both in venture financing as well as when a company is sold or goes public. This paper details the procedure to determine the value of a company in e-business. It first investigates which models must be applied, before proceeding to work out how the company's payment surpluses on which the valuation is based should be estimated. This article makes it clear that it is less the choice of the valuation model and much more the surplus forecast that constitutes the real challenge in valuing start-up internet companies.

Online publication date: Mon, 13-Mar-2006

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