Value Assessment in Venture Capital Investing

Nowadays every company tends to be optimized and improved through the innovation. The venture investments are increasing year by year, that means there is an investors' interest in innovative companies. Despite the higher risks, venture business are very attractive for investors. The companies with venture capital do not copy someone's products, they create new branches of business, opening new opportunities for investing and expanding economic activity. The relevance of the topic chosen for the study is determined by the need to develop institutions of innovative technologies and to find rational ways to improve the mechanisms for implementing venture investments. Companies with venture capital have some limitations and difficulties in assessing the value, therefore, in order to reduce the uncertainty of investors, it is necessary to look for new approaches to the valuation of such companies. Also, many authors note that today there is still no universal way to assess the value of companies with venture capital, so this topic is open to new researches. The purpose of the paper is to identify non-financial indicators that affect the value of companies with venture capital. The research has main tasks: description of the features of venture financing and forms of venture capital; review and comparison of valuation methods for companies with venture capital; conducting analysis of the venture industry; applied application of the discounted cash flow methodology for valuation of companies with venture capital; the construction of regression models demonstrating the relationship between the company's value and non-financial indicators. The object of research are companies with venture capital. The subject of the study is the process of assessing the value of companies with venture capital. The paper consists of an introduction, four chapters, conclusion, bibliography.