Venture capitalists could start relying on a new way to measure the potential value of tech startups if a Wharton professor has his way.
Andrew Metrick, an associate professor of finance at the University of Pennsylvania’s Wharton School of Business in Philadelphia, believes he has found a simpler way to value tech companies using Microsoft Excel spreadsheets and some common-sense advice.
Establishing the value of a startup company has never been an easy task for either entrepreneurs or VC firms looking for promising technology to finance. While VC funding can help a company develop its technology as well as its sales and marketing muscle, the initial value of a company might be low, especially when it’s still in its early stages.
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