This book deals with the valuation of Internet start-ups after the burst
of the dot-com bubble. The objective is to fill some of the existing
gaps in order to contribute to the development of this field of study.
Indeed, it is a relatively recent subject, and the research devoted to
it, is still limited. The valuation of an Internet start-up does not
only depend on ist stage of development, but also on five qualitative
factors, namely the team, the business model, the market, the risk, and
the exit options. In fact, venture capitalists base their valuation on
the perceived growth potential of the company. Subsequently, this book
addresses the issue of intangible assets. In fact, an Internet company
derives most of ist value from the intellectual capital, the brand
equity, and the website. The author analyses these intangible assets and
their accounting treatment. The discounted cash flow valuation method
is based on financial projections, and the relative valuation method.
These factors are identified and examined in detail. Their analysis is
crucial for it determines the valuation of an internet start-up.