Founder’s Added Value in a Startup Valuation. Could an Expert be Worth an Extra Penny?

Yan de Arruda Cheng; Raphael Moses Roquete; Carlos Heitor Campani

doi:10.5020/2318-0722.2021.27.3.10172

Autores

Yan de Arruda Cheng Universidade Federal do Rio de Janeiro (UFRJ)
Raphael Moses Roquete Universidade Federal do Rio de Janeiro (UFRJ) https://orcid.org/0000-0001-5554-0379
Carlos Heitor Campani Universidade Federal do Rio de Janeiro (UFRJ) https://orcid.org/0000-0003-1896-7837

DOI:

https://doi.org/10.5020/2318-0722.2021.27.3.10172

Palavras-chave:

Experience frontier, Venture capital, Startup valuation, Founder’s track record

Resumo

The Brazilian Startup market has been growing fast recently, but the assessment of a startup company is still considered a black box by many authors and investors in the market. The main reason for the difficulty of evaluating a startup is the lack of a universal methodology applicable to this type of company. In this article, the authors tested an alternative way to evaluate a company using key variables from the founder’s experience. Approximately 30 Brazilian VC funds and the profile of 130 founders with public data were analyzed, and we found significance in the founder’s senior management experience before the funding stage. The result is still basic to consider a new assessment approach for startups, but the main conclusion of this article is relevant: the experience of senior management has a significant and consistent impact on the assessment of a startup in Brazil.

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Biografia do Autor

Yan de Arruda Cheng, Universidade Federal do Rio de Janeiro (UFRJ)

Senior Manager | EY Strategy and Transaction - Corporate Finance - M&A. Instituto COPPEAD - UFRJ.

Raphael Moses Roquete, Universidade Federal do Rio de Janeiro (UFRJ)

Doutor e Mestre em Administração pelo Instituto COPPEAD de Administração da UFRJ. Professor de Finanças da Faculdade de Administração e Ciências Contábeis (FACC), da UFRJ.

Carlos Heitor Campani, Universidade Federal do Rio de Janeiro (UFRJ)

Ph.D. em Finanças pela EDHEC Business School, França. Professor de Finanças do Instituto COPPEAD da Universidade Federal do Rio de Janeiro (UFRJ).

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