scholarly journals The evaluation of venture capital investments using real option approach

2020 ◽  
Vol 54 (2) ◽  
pp. 17-29 ◽  
Author(s):  
Alexandra Posza ◽  
Keyword(s):  
Venture Capital ◽  
Real Option ◽  
Capital Investments ◽  
Real Option Approach ◽  
Venture Capital Investments

scholarly journals REAL OPTION ANALYSIS OF VENTURE CAPITAL INVESTMENTS

2020 ◽  
Vol 3 (1) ◽  
pp. 64-77
Author(s):  
Alexandra Posza
Keyword(s):  
Venture Capital ◽  
Capital Investment ◽  
Real Option ◽  
Evaluation Method ◽  
Growth Potential ◽  
Capital Investments ◽  
Discounted Cash Flow ◽  
Venture Capital Investment ◽  
High Degree ◽  
Venture Capital Investments

Venture capital investments play an important role in the development and growth of start-up companies that are characterized by a high degree of uncertainty and growth potential, and venture capital is also one of the major sources of financing for entrepreneurial businesses. In the case of venture capital investment, staging has a huge potential, so the venture capitalists keep the right to participate in further financing rounds. The real option approach as an evaluation method provides an opportunity to evaluate this kind of investment with the help of flexibility in the case of a high degree of uncertainty. The paper puts the emphasis on the evaluation and the effectiveness of venture capital investments primarily from the aspect of real option theory tested on Hungarian venture capital cases. The paper concludes that the option-based valuation methods are more suitable for evaluating venture capital investments than others, especially the discounted cash flow method.

A CONFIGURATIONAL PERSPECTIVE ON VENTURE CAPITAL INVESTMENTS

2016 ◽  
Author(s):  
Uwe Messer ◽  
Alexander Leischnig ◽  
Sabrina Thornton
Keyword(s):  
Venture Capital ◽  
Capital Investments ◽  
Venture Capital Investments
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