A New Way to Gauge a Start-Up’s Worth - “Venture Capital and the Finance of Innovation”
| January 1, 2007 |  View for printing |
INVESTORS in young, fast-growing companies have a new way to calculate their value without regard to the prices of other companies’ stocks. This is an important advance, because most other appraisal methods for start-ups are based on relative valuation, which — as we saw at the top of the Internet bubble — grossly overvalues a new company when comparable companies in the same industry are also overvalued.
By MARK HULBERT
Full Story: http://www.nytimes.com/2006/12/31/bu ... oref=slogin
No reader comments so far. Be the first to comment by clicking the button below.
Reprinted under the Fair Use doctrine of international copyright law. Full copyright retained by the original publication. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
