Why entrepreneurs and VCs disagree in valuing start-up firms: Imputing the target rate of return using DCF vs. option-based approaches

Journal of Private Equity

Volumn 13, Issue 1, 2009, Pages 73-79

  Goldenberg, David H ^a   Goldenberg, Michael D ^b  

^a RENSSELAER POLYTECHNIC INSTITUTE   (United States)

^b Major Management Consulting Firm   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 77956328634     PISSN: 10965572     EISSN: None     Source Type: Journal    
DOI: 10.3905/JPE.2009.13.1.073     Document Type: Article

References (6)

1. Cochrane, John. "The Risk and Return of Venture Capital." Journal of Financial Economics, Vol. 75, No. 1(2005), pp. 3-52.
2. Lerner, Josh. "A Note on Valuation in Private Equity Settings." Harvard Business Publishing Case No. 297050, 2002.
3. Lint, O., and E. Pennings. "R&D as an Option on Market Introduction. " R&D Management, Vol. 28, No. 4(1998), pp. 279-287.
4. McDonald, Robert. Derivatives Markets. Addison Wesley Series in Finance, 2005.
5. Shane, Scott. Illusions of Entrepreneurship: The Costly Myths that Entrepreneurs, Investors, and Policy Makers Live By. Yale University Press, 2008.
6. Yitshaki, Ronit. "Venture Capitalist-Entrepreneur Conf licts: An Exploratory Study of Determinants and Possible Resolutions." International Journal of Conflict Management, Vol. 19, No. 3(2008), pp. 262-292.