Value drivers of startup valuation from venture capital equity-based investing: A global analysis with a focus on technological factors

Hidayat, Sutan Emir; Bamahriz, Omar; Hidayati, Nadiah; Sari, Citra Atrina; Dewandaru, Ginanjar

doi:10.1016/j.bir.2021.10.001

Cited by 18 publications

(7 citation statements)

References 26 publications

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“…, 2023). The second issue is related to the drivers of unicorns' valuation by VCs (Hidayat et al. , 2022) as well as to methods and techniques to measure the growth of high-potential technology-based new ventures, such as unicorns (Malyy et al.…”

Section: Resultsmentioning

confidence: 99%

“…Evidently, this speed is influenced by specific country conditions, including those related to the funding factors that, however, are still scarcely investigated (Chen, 2022;Burstr€ om et al, 2023). The second issue is related to the drivers of unicorns' valuation by VCs (Hidayat et al, 2022) as well as to methods and techniques to measure the growth of highpotential technology-based new ventures, such as unicorns (Malyy et al, 2021). This issue takes on a specific relevance given that, on the one hand, VCs provide easy access to funds; on the other hand, unicorn funders are focused on growth/scale rather than profitability (Menon and James, 2022).…”

Section: Systematic Literature Review Analysismentioning

confidence: 99%

“…In this regard, scholars shed light on financial and nonfinancial parameters, including patents, management teams, industry technology and disruptive (or not) products/services. Hidayat et al (2022) argue that technologies involving big data, clean tech, mobile and augmented reality drive unicorns' valuation by VCs, regardless of the sectors in which the companies originate. Other scholars, by conducting empirical research in the US, show that the growth dynamics of unicorns are positively correlated with their web search traffic (e.g.…”

Section: Systematic Literature Review Analysismentioning

confidence: 99%

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Beyond myth: a systematic literature review on the emergence of unicorn firms

Giardino,

Delladio,

Baiocco

et al. 2023

JSBED

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PurposeThis study aims to provide a systematic and comprehensive examination of the underlying factors enabling the emergence of unicorn firms. By addressing this research gap and offering an integrative framework, it seeks to support future research efforts in understanding this phenomenon and contribute to the academic debate around it.Design/methodology/approachThis study employs a systematic literature review (SLR) approach and thematic analysis of articles retrieved from Scopus and Web of Science databases.FindingsThe study sheds light on internal characteristics, ranging from the entrepreneurial (human capital and knowledge) to firm-specific level (business model, corporate governance, resources) and external ones related to the funding factors (financial patterns, venture capitalists, firm evaluation) and the ecosystem (entrepreneurial and technology) around the phenomenon of unicorn firms.Originality/valueThis is the first systematic literature review on unicorns that offers insights into the internal and external factors driving the emergence of such firms, contributes to shed light on the main criticalities that blur their understanding and presents a research agenda for developing this field of research.

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Section: Resultsmentioning

confidence: 99%

Section: Systematic Literature Review Analysismentioning

confidence: 99%

Section: Systematic Literature Review Analysismentioning

confidence: 99%

See 1 more Smart Citation

Beyond myth: a systematic literature review on the emergence of unicorn firms

Giardino,

Delladio,

Baiocco

et al. 2023

JSBED

View full text Add to dashboard Cite

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“…Value investing starts with analyzing the fundamentals of a company and budgeting its stock price. That's why both entrepreneurs and investors see valuation as key, in which they can determine their control and the value of their shares [2]. Through the application of the DCF model in actual enterprise valuation, this study discloses the advantages and disadvantages of the DCF model, and puts forward ideas for the applicability of the DCF model and the application of more precise valuation models based on it for technology-oriented enterprises such as Netflix.…”

Section: Introductionmentioning

confidence: 93%

Application of Discounted Cash Flow Model in Company Valuation- A Case Study of Netflix

Wang¹

2022

Advances in Economics, Business and Management Research

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In recent years, the Internet has profoundly changed the way people live, work and play in a form of rapid development. With this trend, the activities of Internet enterprises in the capital market are becoming increasingly frequent. How to use reasonable methods to value Internet enterprises has become an important issue. This paper discusses several existing enterprise valuation models and uses the discounted cash flow model to evaluate Netflix and estimates the enterprise value of Netflix based on the discounted cash flow model(DCF) and the capital asset pricing model(CAPM). The research used qualitative and quantitative methods to predict the financial data of enterprises, applying the linear regression method to predict the income and expenses of enterprises in the next six years, and qualitatively estimating the changes in the financial data of enterprises, and finally calculating WACC and corporate value. By comparing the data, this paper found that there are some differences between the calculated enterprise value and the official enterprise value, as well as some differences between the estimated debt to equity ratio and the expected ratio. This paper also discusses the reasons for the calculation differences, including the inherent defects in the application of the DCF model and the differences of data prediction.

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“…Further, regulatory developments for ESG are taking place all over the world nowadays (KPMG 2022), which are the key guidelines for investors to make ESG investments. Technology stocks within Industry 4.0 have garnered broad investor attention due to their outperformance across all industry sectors, making them an attractive long-term investment (Emir Hidayat et al 2022). Moreover, anecdotal evidence suggests that the technology sector has exhibited remarkable resilience in economic downturns, possibly attributed to its extensive economy-wide dependency and suitability for "work from home" scenarios (BenSaïda and Litimi 2021; Hossain et al 2023).…”

Section: Introductionmentioning

confidence: 99%

Can ESG Integration Enhance the Stability of Disruptive Technology Stock Investments? Evidence from Copula-Based Approaches

Yu,

Xu,

Chen

2024

JRFM

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This paper provides an investigation into the dependence structure among different disruptive technology sectors driving the Fourth Industrial Revolution and scrutinizes the impact of ESG integration on shaping investments in different tech stock sectors in the presence of ESG consideration, represented by the ESG stock index, versus without specific ESG consideration, represented by the general stock index. The results show that (i) C-vine outperforms R-vine and D-vine when modeling the dependence structure of tech sectors. Intelligent infrastructure is the most crucial sector, with substantial reliance on smart transportation and advanced manufacturing. (ii) ESG integration reduces dependence, especially tail dependence, between tech sectors and the stock market, which benefits the future security sector the most and future communication the least. (iii) ESG integration mitigates risk spillover between tech sectors and the stock market, particularly benefiting final frontiers and intelligent infrastructure. The decrease in downside spillover is more significant compared to upside scenarios. For downside risk, spillover from tech sectors to stock indices is more reduced than the reverse, while the opposite holds for upside risk. These sectoral findings offer insights for market participants in financial market investments, financial regulators in risk management, and listed companies in ESG disclosure.

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Value drivers of startup valuation from venture capital equity-based investing: A global analysis with a focus on technological factors

Cited by 18 publications

References 26 publications

Beyond myth: a systematic literature review on the emergence of unicorn firms

Beyond myth: a systematic literature review on the emergence of unicorn firms

Application of Discounted Cash Flow Model in Company Valuation- A Case Study of Netflix

Can ESG Integration Enhance the Stability of Disruptive Technology Stock Investments? Evidence from Copula-Based Approaches

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