Oceňování 2021, 14(2):59-80 | DOI: 10.18267/j.ocenovani.262

Literature overview of three directions of research to assess the future success of an IT start-up at the early-stage phase

Michal Novák

Ing. Michal Novák, doktorand; Katedra financí a oceňování podniku, VŠE Praha

This article systematically organized the fragmented literature into a comprehensive overview and provides compact information on qualitative criteria aimed at the future success of an IT start-up at an early stage phase. The capital infusion in the form of substantial VC investment is a gauge of success. The qualitative criteria may be considered by valuers or analysts when drawing up a financial plan (investment model). Three directions of research on start-up valuation emerged from the literature overview. Current valuation practice has sophisticated methods of public equity valuation, which mature companies are, while private equity valuation is cloaked in mystery and black magic. The first direction develops and deepens methods of public equity valuation. The second and third directions develop the field of private equity valuation (i.e., VC investments) and look for a link between the acquisition of a substantial VC investment and the factors themselves that lead to the acquisition of the VC investment. The second direction defines obtaining a VC investment as a success criterion, while the third direction analyses the individual factors present in successful start-ups.

Keywords: Start-up; Venture Capital; Valuation; Success

Grants and funding:

Článek je zpracován jako jeden z výstupů výzkumného projektu Fakulty financí a účetnictví VŠE Praha, který je realizován v rámci institucionální podpory VŠE IP100040.

JEL classification: G24, G30, M13

Published: October 6, 2021  Show citation