Pre-Money Valuation of Startups in Japan

DOI

Bibliographic Information

Other Title
  • 日本のスタートアップのPre-Money Valuationの決定
  • －An Empirical Analysis on the Bargaining Power of Entrepreneurs and Investors－
  • ―最初のエクイティファイナンスにおける起業家と投資家の交渉力に関する分析―

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Description

One of the biggest concerns of entrepreneurs and investors regarding the equity financing of startups is the post-financing equity shareholding structure. The process of pre-money valuation, which establishes this shareholding structure is determined by negotiations between the entrepreneurs and investors. In this paper, we explore and validate the nature of entrepreneurs and investors who demonstrate a strong bargaining power in their pre-money valuation decisions, based on the first round of equity financing of domestic startups in Japan. The results show that entrepreneurs with a strong bargaining power over investors, have work experience and a background in the concerned industry. Additionally, domestic venture capital (VC) firms that are private and independent, (business) companies, and angel investors are identified as investors with a strong bargaining power over entrepreneurs.

Journal

  • Venture Review

    Venture Review 36 (0), 45-58, 2020-09-15

    THE JAPAN ACADEMIC SOCIETY FOR VENTURES & ENTREPRENEURS

Keywords

Details 詳細情報について

  • CRID
    1390290769955268608
  • NII Article ID
    130008141046
  • DOI
    10.24717/jasve.36.0_45
  • ISSN
    24338338
    18834949
  • Text Lang
    ja
  • Data Source
    • JaLC
    • CiNii Articles
  • Abstract License Flag
    Disallowed

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