Hide
Show all
Email this article 
Methodological approaches to evaluating the effectiveness of venture projects
Abstract
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.
Keywords
Full Text:
References
Turning the corner. - Global venture capital in sight sand trends 2013. (2013). Ernst & Young.
Macmillan, I. C., Siegel R., Subba, P. N. Narasimha (1985). Criteria used by venture capitalists to evaluate new venture proposals. Journal of Business Venturing, 1 (1), 119-128 .
Kung, C. -Y., Wen, K. -L. (2007). Applying Grey Relational Analysis and Grey Decision-Making to evaluate the relationship between company attributes and its financial performance. Decision Support Systems, 3 (2), 842-852
Engel, D. & Keilbach, M. (2007). Firm-level implications of early stage venture capital investment - An empirical investigation. Journal of Empirical Finance, 14 (2), 150-167.
Titov, V. I. (2009). Economic evaluation of investment. Moskow: SRI technology school.
Gulkin, P. G. & Terebynkina, T. A. (2002). valuation and pricing in venture investing and entering the market IPO. St. Petersburg : LLC " Alpari Research Center of St. Petersburg.
Brigham, E. F. (1997). Fundamentals of Financial Management. Kyiv: Molod.
Kovalev, V. V. (1995). Financial Analysis : Money Management. Investment choices. Reporting analysis. – Moscow: Finances and Statistics.
Galasyuk, B. (n. d.). The conflict criteria IRR and NPV. Retrieved September 15, 2013, from : http://www.cfin.ru/finanalysis//invest/npv_vs_irr. shtml.
Baranov, A. O. & Musyko, E. I. (2011). Real Options in venture financing Score positions with venture fund. Bulletin of the NSU . Series: Socio- economic sciences, 11 (2), 62-70.
Tobin, J. (1958). Liquidity preference as behaviour towards risk. The Review of Economic Studies. The Cowles Foundation for Research in Economics at Yale University, 67, 65-86 .
Loukashov, A. V. (2006). Venture Financing : companies' value and corporate governance. Corporate Finance Management, 2 (1), 78-97 .
Wainwright, F. & Blaydon, C. (2005). Note on Private Equity Deal Structures. Tuck School of Business at Dartmouth.
International guidelines estimated equity and venture capital European Association of Venture Capital - 2009. (2010).
Article Metrics
Metrics powered by PLOS ALM
Refbacks
- There are currently no refbacks.
Copyright (c)
Articles are distributed under Creative Commons Attribution International 4.0 (CC-BY-NC 4.0)
Science Works Journal "Ekonomichnyy analiz"
ISSN 1993-0259 (Print) ISSN 2219-4649 (Online) DOI: 10.35774/econa
© West Ukrainian National University
© «Ekonomichnyy analiz», 2007-2023