Small innovative company’s valuation within venture capital financing of projects in the construction industry

• Main Authors: Bril, Alexander, Kalinina, Olga, Ilin, Igor
• Format: Conference Proceeding
• Language: English
• Subjects: Business; Construction industry; Feasibility studies; Financing; Investment; Project evaluation; Proposals; Venture capital
• ISSN: 2261-236X; 2274-7214; 2261-236X
• DOI: 10.1051/matecconf/201710608010

The article is focused on the pressing and debatable challenge of venture capital business – the valuation of the company aimed to ensure the process of “buy-back” in the preparation of the agreement on the financing of start-ups in the Russian Federation. Exactly this stage of venture project evaluation occurs to be the most arguable among investors and founders of the company, because up to 40% of transactions fail at this stage. The materials of the article provide a set of simple methods to assess the value of the company, which is actually feasible in the early stages of design. The article considers the overall situation of development in recent years and the classification of the main types of external venture business in Russia, depending on the financial resources discussed to justify the proposals. The proposals are based on the experience of the authors in the field of business planning innovative projects and analysis of small innovative enterprises schemes based on investment stages. In the article, there is an example of economic indicators monitoring and calculation on start-up of special modules of electric systems, working in the construction business.