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




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


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.


Não há dados estatísticos.

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).


AGHION, P.; HOWITT, P. A model of growth through creative destruction. Econometrica, [s. l.], v. 60, n. 2, p. 323, 1992. DOI: Disponível em: Acesso em: 9 dez. 2021.

ALLEN, F.; BREALEY, R.; MYERS, S. Principles of corporate finance. Nova York: McGraw-Hill, 2007. v. 36.

BAEYENS, K.; VANACKER, T.; MANIGART, S. Venture capitalists’ selection process: the case of biotechnology proposals. International Journal of Technology Management, [s. l.], v. 34, n. 1-2, p. 28-46, 2006.

CLERCQ, D. de et al. An entrepreneur’s guide to the venture capital galaxy. Academy of Management Perspectives, [s. l.], v. 20, n. 3, p. 90-112, 2006.

EMOTT, D. T. Practitioner’s complete guide to M&As, with website: an all-inclusive reference. Nova Jersey: John Wiley & Sons, 2011. v. 1.

GIMENO, J. et al. Survival of the fittest? entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, [s. l.], v. 42, n. 4, p. 750-783, 1997.

GORNALL, W.; STREBULAEV, I. A. Squaring venture capital valuations with reality. Journal of Financial Economics, [s. l.], v. 135, n. 1, p. 120-143, 2020.

KLEPPER, S. Entry, exit, growth, and innovation over the product life cycle. American Economic Review, [s. l.], v. 86, n. 3, p. 562–583, 1996.

LERM, M.; ROLLBERG, R.; KURZ, P. Financial valuation of start-up businesses with and without venture capital. International Journal of Entrepreneurial Venturing, [s. l.], v. 4, n. 3, p. 257–275, 2012.

MACMILLAN, I. C.; SIEGEL, R.; NARASIMHA, P. N. S. Criteria used by venture capitalists to evaluate new venture proposals. Journal of Business Venturing, [s. l.], v. 1, p. 119-128, 1985.

MCCLURE, B. Valuing startup ventures. Investopedia, [s. l.], v. 9, 2019.

MILOUD, T.; ASPELUND, A.; CABROL, M. Startup valuation by venture capitalists: an empirical study. Venture Capital, [s. l.], v. 14, n. 2-3, p. 151-174, 2012.

MINARDI, A. M. A. F. M. et al. Performance of the private equity and venture capital industry in Brazil. [S. l.]: Insper, 2018.

MUZYKA, D.; BIRLEY, S.; LELEUX, B. Trade-offs in the investment decisons of European venture capitalists. Journal of Business Venturing, [s. l.], v. 11, n. 4, p. 273-287, 1996.

NUBANK atrai USD 400 milhões em nova rodada de investimento. Nubank, [s. l.], 2 ago. 2021. Disponível em: Acesso em: 9 out. 2019.

PERETTO, P. F. Technological change, market rivalry, and the evolution of the capitalist engine of growth. Journal of Economic Growth, [s. l.], v. 3, n. 1, p. 53–80, 1998.

SEGERSTROM, P. S. Innovation, imitation, and economic growth. Journal of Political Economy, [s. l.], v. 99, n. 4, p. 807-827, 1991.

SIEGEL, R.; SIEGEL, E.; MACMILLAN, I. C. Characteristics distinguishing high-growth ventures. Journal of Business Venturing, [s. l.], v. 8, n. 2, p. 169-180, 1993.

TIMMONS, J. A. New venture creation: entrepreneurship in the 1990s. Boston: [s. n.] 1990. v. 1.

ZIDER, B. How venture capital works. IEEE Engineering Management Review, [s. l.], v. 28, n. 2, p. 96-103, 2000.




Como Citar

CHENG, Y. de A.; ROQUETE, R. M.; CAMPANI, C. H. Founder’s Added Value in a Startup Valuation. Could an Expert be Worth an Extra Penny?. Revista Ciências Administrativas, [S. l.], v. 27, n. 3, 2021. DOI: 10.5020/2318-0722.2021.27.3.10172. Disponível em: Acesso em: 3 mar. 2024.