EBOOK Valuing an Entrepreneurial Enterprise

Entrepreneurs generally lack the marketing capabilities necessary to bring their        new product to market. To engage the resources required to do this, they must        somehow place a value on the enterprise. However, all of the methods of valuation        currently available are based on the use of historical or current revenues, and        therefore are not applicable to an entrepreneurial enterprise with a first-time        product. In Valuing an Entrepreneurial Enterprise, Audretsch and Link present a        valuation method uniquely tailored to emerging technology-based ventures that have        no revenue history to lean on. Unlike many traditional methods, theirs does not take        into account the track record of companies and products similar to that being        valuated. Instead, it draws on economic theory to formulate a solution to the        problem.The book develops conceptual ground, including trends in entrepreneurship,        models of innovation, and the economics of standards and entrepreneurship policy.          The authors review the traditional valuation methods and illustrate them numerically        with case studies to show how the traditional approach produces an incorrect        valuation. The core of the book presents the new methodology and demonstrates how it        avoids the pitfalls of past approaches. The authors also show how public policy on        technology and infrastructure changes valuations of start-up firms in areas such as        stem-cell products and renewable fuels projects.Valuing an Entrepreneurial        Enterprise will serve as a valuable resource for advanced students, economists,        financial planners, and valuators interested in new valuation methods and the theory        behind them, as well as those interested in entrepreneurship.