A Comprehensive Analysis of Startup Valuation Models: Insights from Meta-Synthesis

Document Type : Original Article

Authors

• Zohreh Arefmanesh ¹
• Akram Taftiyan ²
• Sara Darvishi Javanmardi ²

¹ Assistant Professor, Department of Accounting, Faculty of Economic, Management & Accounting , Yazd University , Yazd, Iran,

² Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran

10.22067/ijaaf.2024.43024.1220

Abstract

In today's rapidly evolving technological landscape, the valuation of startup companies holds significant importance, given the increasing interest in startups among companies. Valuation models for startups typically fall into two categories: quantitative and qualitative methods. This study employs a qualitative research approach, utilizing meta-synthesis methodology, to identify and categorize these valuation models. Through a systematic evaluation of 162 previous research findings using Wilson's seven-step meta-synthesis process, nine main categories and 63 sub-categories were extracted from the literature. These categories were then analyzed and weighted using Shannon Entropy analysis. The findings reveal two overarching categories: quantitative valuation, encompassing cost-oriented, market-oriented, revenue-oriented, and actual methods, and qualitative valuation, comprising human capital, organizational capital, market-based assets, industrial structure, and quality techniques. This study's outcomes offer valuable insights for venture capitalists and financial managers, facilitating a deeper understanding of startup valuation and the classification of valuation models.

Keywords

• Meta-Synthesis Qualitative Approach
• Startup Companies
• Technological Dimension
• Valuation

Main Subjects

• Accounting

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