More sophisticated methodologies for allocating equity value among various classes of shareholders are becoming more common in the accounting and regulatory communities, resulting in more robust and credible value conclusions. Such methodologies are discussed in this chapter using specific examples. These methodologies are also expected to eventually propagate to the investment community because of the economic and financial foundations are quite sound. Although some of these techniques are, admittedly, complex, an understanding of early-stage venture valuation is incomplete without, at least, a high-level understanding of such techniques.
Blake, M. (2016), "Term Sheets: Valuing Investments in Emerging Technology Companies", Technological Innovation: Generating Economic Results (Advances in the Study of Entrepreneurship, Innovation and Economic Growth, Vol. 26), Emerald Group Publishing Limited, pp. 341-360. https://doi.org/10.1108/S1048-473620160000026012Download as .RIS
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