The Hypothesis Testing Method for Startup Valuation and Management

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"The Hypothesis Testing Method for Startup Valuation and Management" is a scholarly article originally published in the well known New York publisher "Ideas Spread" and is indexed by the Harvard Library. The article suggests a new perspective to evaluating innovation projects and understanding the nature of a startup risk. Its root methodology considers five principal hypotheses that underlie every innovative startup that comprise a bunch of respective assumptions to manage startup risks in a proactive manner.

The findings of this research paved the way to the recently published book "When Businesses Test Hypotheses..." (Columbia University Press, Ibidem Press) and spot the light on a startup uncertainty and startup risk, embedded investment and managerial options, and enables more comprehensive and accurate evaluation of innovative startups.

The suggested Hypothesis 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 based on the previous research of tools for evaluating innovative ideas, Real Options approach, financial instruments to manage innovation, optimal sources of financing and its valuation.

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

The full manuscript of the "Hypothesis Testing Method for Startup Valuation and Management" article is available at:

Dmytro Shestakov, April 2021