Venture capital valuation methods : challenges and opportunities to current trends and landscape

Abstract

The venture capital industry needs to gather their resources and expertise with the aim of developing a standardized guideline system which can help investors reduce the subjectivity of alternative startup valuation methods, which rely highly in qualitative scales and procedures. However, their use as a block can be helpful to tackle the uncertainty of the decision process, as they all emerge as a surrogate answer to the mechanical and highly quantifiable standard methodologies characteristic of more consolidated and stable phases of the company life cycle.