The Hypotheses Testing Method for Evaluation of Startup Projects

This paper suggests new perspective to evaluating innovation projects and understanding the nature of startup risks. Author consider five principal hypotheses that underlie every innovative project that comprise a bunch of respective assumptions to manage start up risks in a proactive manner.

Suggested approach spots the light on a project’s uncertainties and risks, embedded investment and managerial options, and enables more comprehensive and accurate evaluation of innovation.

The Hypotheses Testing Method enables to estimate risks and attractiveness of a startup project in a clear and fast manner. It replaces unclear traditional techniques like NPV and DCF, avoiding heavy cash flow modelling.

Keywords: innovation management, startup, risk management, startup valuation.

Publisher: Journal of Economics and Management Sciences; Vol. 4, No. 4; 2021; ISSN 2576-3008; E-ISSN 2576-3016. 

Dmytro Shestakov

Download PDF