Open AccessThe Hypotheses Testing Method for Evaluation of Startup Projects
Author(s) -
Dmytro Shestakov
Publication year - 2021
Publication title -
journal of economics and management sciences
Language(s) - English
Resource type - Journals
eISSN - 2576-3016
pISSN - 2576-3008
DOI - 10.30560/jems.v4n4p47
Subject(s) - attractiveness , principal (computer security) , cash flow , risk analysis (engineering) , investment (military) , perspective (graphical) , computer science , discounted cash flow , management science , business , process management , economics , finance , psychology , artificial intelligence , computer security , politics , political science , psychoanalysis , law
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 startup 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.