The valuation game

: an empirical study of Portuguese startups’ success factors

Abstract

Valuing startups is a complex task, as these companies often have limited financial history and uncertain future cash flows. In addition, startups are typically high­risk ventures, requiring valuation techniques that consider this higher level of risk. In this study, I examine the impact of some factors in the valuation of Portuguese startups. To do this, I developed a multiple linear regression model and created nine hypotheses on the effects of each variable on valuations. The study is based on a Portuguese startup sample and uses multiple regression analysis to test the hypotheses. The study results provide insights into the factors most important in the valuation of Portuguese startups and can inform the development of more effective valuation techniques for these companies. The factors that were found to increase valuations included having a B2B focus, having a headquarters outside of Portugal, having a SaaS business model, having registered patents, and being a Fintech company. It was also found that having a female founder or attending a top university was associated with higher valuations. However, having prior startup experience or investing in R&D did not positively impact valuations.

Date of Award	26 Jan 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Freire de Andrade (Supervisor)