This qualitative research aimed to describe the results of a phenomenon that were occurs. The method used was Social Network Analysis (SNA). This study itself had used this phenomenon to measure the performance of companies (through brands) that were popular on social media, namely Gopay and DANA, in an effort to measure a person's awareness and interest. User Generated Content (UGC) information, which was a track record left by users on social media, can be used as a mapping for users who communicate on social media. On social media, users had tried to reveal information they already knew about financial technology startup businesses. This study aimed to analyze how effective the use of social media was to maximize recognition and sales. It explores a possibility to develop a supplementary method to value an early-stage new venture when extant valuation methods fail to yield consistent results because these methods require accounting information that a new venture typically cannot provide. It brings more theoretical rigor to the venture capital investment literature by introducing a systematic approach to identify and measure factors important to new venture valuation. These empirical findings help to establish an initial linkage between the well-developed theories in strategic management and under-researched venture capital valuation practice. More specifically, this article finds that attractiveness of the industry, the quality of the founder and top management team, as well as external relationships of a new venture significantly and positively affect its valuation by venture capitalists when it seeks venture capital financing in its early stages of development. Empirical results from the analyses of 184 rounds of early-stage venture capital investments in 102 new ventures support the central proposition that venture capitalists do take into consideration those factors that are important to firm performance in their valuation of new ventures. ![]() This article develops an integrated theoretical framework to examine whether venture capitalists' valuation of a new venture can be explained by factors identified in the strategy theories as important to firm performance. How to value a new venture is critical in entrepreneurial financing.
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