Startup Valuation Determinants: Examining the Economic Value of German Startups from a Strategic Theory Perspective
IUP Journal of Applied Economics
; 21(2):7-25, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1958075
ABSTRACT
The pre-money valuation of startups, as their performance indicator, is critical in entrepreneurial financing, which in turn is significantly shaped by the firm's internal resources. This paper analyzes an integrated theoretical framework to examine whether the valuation of startups can be explained by strategic and firm-level factors identified by Barney's (1991) Resource-Based Theory (RBT) as critical to firm performance. Empirical results from the analyses of 142 German startups support the theory that investors consider important factors to startups' performance in their valuation. Implications of the study involve further research on the impact of social and financial capital within human and physical resources and establishes different determinants important to raise different types of funds-venture capital, angel, seed, and grant-in tech and non-tech startups.
Business And Economics; Innovations; Social capital; Strategic management; Organizational performance; Valuation; Startups; Funding; Venture capital; Entrepreneurs; Initial public offerings; International finance; Money; Entrepreneurial finance; COVID-19; United Kingdom--UK; United States--US; Europe; Germany
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Collection:
Databases of international organizations
Database:
ProQuest Central
Language:
English
Journal:
IUP Journal of Applied Economics
Year:
2022
Document Type:
Article
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