ESTIMATING THE VALUE OF A START-UP FUNDED BY VENTURE CAPITAL: A CASE STUDY OF UBER TECHNOLOGIES INC.

Abstract

The aim of this study is to evaluate the efficacy of the Venture Capital Method (VCM) in estimating the value of start-up companies funded by venture capital. A sample of 110 respondents was collected using a Likert scale questionnaire. Statistical analysis was conducted using JASP version 0.19.0.0. The findings indicate that VCM is effective in estimating the value of start-up companies that receive venture capital financing. This research contributes significantly to understanding the relationship between the Venture Capital Method and start-up financing. The study concludes that VCM is a vital analytical tool for determining the value of start-ups both before and after the injection of new capital. The findings are particularly novel as they utilise a technology company as a case study, thereby generalising the results to other start-ups.