TY - JOUR

T1 - Using real options for the evaluation of venture projects

AU - Baranov, Alexander

AU - Muzyko, Elena

PY - 2016/5/1

Y1 - 2016/5/1

N2 - This paper considers the peculiarities of the application of the real options method for assessing the economic efficiency of venture investments in innovative projects from the venture fund’s position. The results of the practical use of the author’s approach for the evaluation of venture investments with real options are analyzed. The paper shows the applicability of the real options concept to the valuation of the effectiveness of venture capital investments. The use of the real options method raises the accuracy of the estimation and enhances the instruments of the venture fund in evaluating the economic efficiency of innovative projects.

AB - This paper considers the peculiarities of the application of the real options method for assessing the economic efficiency of venture investments in innovative projects from the venture fund’s position. The results of the practical use of the author’s approach for the evaluation of venture investments with real options are analyzed. The paper shows the applicability of the real options concept to the valuation of the effectiveness of venture capital investments. The use of the real options method raises the accuracy of the estimation and enhances the instruments of the venture fund in evaluating the economic efficiency of innovative projects.

KW - Financial options

KW - Innovative project

KW - Real options

KW - Uncertainty

KW - Venture capital investment

UR - http://www.scopus.com/inward/record.url?scp=85027495951&partnerID=8YFLogxK

U2 - 10.22146/gamaijb.12601

DO - 10.22146/gamaijb.12601

M3 - Article

AN - SCOPUS:85027495951

VL - 18

SP - 153

EP - 185

JO - Gadjah Mada International Journal of Business

JF - Gadjah Mada International Journal of Business

SN - 1411-1128

IS - 2

ER -