Statistical Models Commons^™

Valuing Initial Intellectual Capital Contribution In New Ventures - A Short Technical Note, Peter Blood, Kuldeep Kumar, Sukanto Bhattacharya

Kuldeep Kumar

In this short research note, we add to the existing technical literature on venture valuations. We posit and numerically demonstrate a simple technique of valuing intellectual contribution to a new venture in the form of initial know-how. Such valuation is essential in many practical venture valuation situations where the sources of the intellectual and cash contributions are separate thus necessitating a rational model for a fair apportioning of equity.