Methodological approaches to evaluating the effectiveness of venture projects

Oksana Onufriivna Оkhrimenko


The critical analysis of the basic methodological approaches to evaluating the effectiveness of venture capital investment is carried out. The features of their application in practice of the operation of venture capital funds are investigated. The basic principles for evaluating the effectiveness of investments are formulated.  Attention is focused on the shortcomings of the traditional calculation of the NPV ( net present value of assets), not taking into account the amount of distributed capital. The features of target IRR and NPV in terms of the emergence of contradictions are considered. There has been done the overview of the main methods of business valuation in terms of venture capitalists with their binding to the stages of company development ( project). There has been determined the role of money multipliers used to determine the profitability of venture based on purchase / sale of shares for a profit . There has been shown the  experience of business valuation based on international guidelines to assess the direct and venture investments. On the basis of the analysis there has been formulated the need to consider the risks of investing that will stimulate investment process in venture capital projects.


business valuation, venture capital fund, the criteria for evaluating the effectiveness of investment, cash flow, diversification, venture capital, investment risks

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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