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Full-Text Articles in Technology and Innovation
The Impacts Of Hype And Competition On The Valuations Of Privately-Held U.S. Software Startups, Karan Sudhir Goel
The Impacts Of Hype And Competition On The Valuations Of Privately-Held U.S. Software Startups, Karan Sudhir Goel
CMC Senior Theses
The impacts of internal conditions on startup valuations have been well studied, but external factors such as market hype and competition have been more restricted to public company valuation research. With soaring valuations in the Generative AI market, an analysis of the relation of hype and competition to startup valuations is timely. I test three hypotheses: (1) More hype about certain business or tech-focused topics is associated with higher valuations for startups operating in those areas (2) More competition is associated with lower valuations for startups (3) The positive effect of hype on valuations is offset by the negative effect …
Misvaluing Effective Investors In Intangible Capital, Dustin Lind
Misvaluing Effective Investors In Intangible Capital, Dustin Lind
CMC Senior Theses
Cohen et al. (2013) measure a firm’s ability at investing in knowledge capital, a type of intangible capital, through a model that captures how well a firm translates R&D intensity into future sales growth. Using this model, they show that an investment portfolio comprised of firms that have high R&D spending ability and high R&D intensity earn significant positive abnormal returns. I modify their model to capture a broader investment in intangible capital by replacing R&D intensity with SG&A intensity and substituting sales growth with gross profit growth. My measure of ability at investing in intangible capital has two main …