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Economic Analysis: Theory and Practice
 

Tools for the evaluation of startups' investment opportunities

Vol. 14, Iss. 12, MARCH 2015

PDF  Article PDF Version

Available online: 22 March 2015

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: 

Pages: 2-11

Kolesnichenko E.A. Tambov State University, Tambov, Russian Federation
dissovet@tsu.tmb.ru

Stepanova Yu.N. Voronezh State Forestry Engineering Academy, Voronezh, Russian Federation
julia_vrn@inbox.ru

Ivanova A.V. Voronezh State Forestry Engineering Academy, Voronezh, Russian Federation
anna_iv_1989@mail.ru

Importance In the current economic environment of Russia, innovative activities appear to be extremely unprofitable and expensive. The situation stems from the lack of investors' attention to businesses at the development phase, and search for more promising markets due to the absence of reliable business characteristics and implemented projects.
     Objectives The article focuses on the articulation of methods to assess startup investment opportunities and attractiveness. Currently, the preliminary assessment of investment attractiveness reasonably becomes a necessary step before investors take any decision about startup investing.
     Methods Drawing upon the analysis of the existing methods used to assess the investment attractiveness of innovative projects, the authors suggest using the expert method to evaluate the startup investing opportunities. As for investment attractiveness criteria, the authors select the originality as the project quality indicator; the project novelty as one of the key startup indicators; thorough business project as an ability to set up strategic goals and achieve them. Two parameters indicate whether the project is prepared thoroughly and in detail, i.e. thorough project planning and comprehensiveness.
     Results The authors formulate the framework of criteria and indicators to evaluate startups, and the expert project assessment framework.
     Conclusions and Relevance Applying the score-based approach, startup investing opportunities may be classified as high, attractive but with some limitations, requiring additional improvements or unattractive for investors.

Keywords: startup, investment opportunities, investment attractiveness, startup assessment

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