A Different Risk–Return Relationship

We challenge the widely accepted premise that the valuation of an early-stage firm is simply the capital invested (USD) divided by the equity received (%). Instead, we argue that this calculation determines the break-even point for the investor; for example, investing USD 1.0 in exchange for a 10% e...

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Bibliographic Details
Main Authors: Aydin Selim Oksoy, Matthew R. Farrell, Shaomin Li
Format: Article
Language:English
Published: MDPI AG 2025-01-01
Series:Risks
Subjects:
Online Access:https://www.mdpi.com/2227-9091/13/2/22
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