Towards the use of qualitative data in the valuation of new technology-based ventures

Abstract

This thesis addresses valuation of new technology-based ventures. Its main contribution is a framework for new technology-based venture valuation based on use of both empirically identified success criteria and traditional financial valuation theory. The framework is based on the principle that new technology-based venture value is driven by venture success, and that one therefore can assess a venture s value through assessing its performance on criteria indicating success. To our knowledge this is the first framework for new technology-based venture valuation using this principle.In the thesis we conduct a thorough literature review on venture success, and we identify a series of success criteria. We also assess the impact of applying traditional financial theory on the new venture market. A framework is developed based on the theoretical development and the identified criteria. A preliminary empirical investigation to verify the identified factors is also conducted, and an indication of its ability to predict success is assessed. The framework is applied in a case study, and the results are compared to reference values. Conclusions on its applicability and value are drawn.The thesis consists of two main parts. The first part is a theoretically based article aimed for publication and the second part is a report that has a more applied context. Both the article and the report cover some of the same topics, but are aimed at different audiences of readers. Both parts can be read separately.