Firm valuation and start-up valuation case

The most of the technologies are developed by start-up firms. Start-ups are generally eager for external finances. Large firms, venture capitals and angel investors are interested in start-up activities. Thus, start-up valuation become more important for mergers and acquisitions or take overs. In this study, both traditional and alternative the valuation methods are examined and the methods are discussed if they are appropriate for start-ups. All the methods and approaches to our knowledge are explained and as a case study, the methods are solved by using a real start-up's data which differs the study from previous studies. The differences are determined, results are analyzed, and interpreted. The study consists of four chapters. In the first chapter, the conceps of value and the process of valuation litarature are examined. In the second chapter, the valuation methods with different approaches in the literature are discussed. In the third chapter, the concept of start-up, start-up finances explained, and appropriate start-up valuation methods are compared to each other, spesifically the most important variable: discount factor calculation is expalined. In the last chapter, the valuation methods are calculated with the example firm's adequate data, and results are compared and examined.