The article is devoted to the analysis of the problem of limited access to the investment resources available for the early-stage technology companies which results in the failure of many venture projects with high economic potential and the high concentration in innovative industries. The author argues that the key reason for this lies in the portfolio companies’ selection strategies of venture funds that represent the primary source of project financing in the developing technology markets.
The article provides a theoretic framework for the estimation of project value by venture investors, which allows to analyse various effects that influence the investment attractiveness of the companies at different stages of their life cycle. The author demonstrates how investor’s expectations with respect to the market structure of the new industry, technical complexity and innovativeness of the project, the quality of management affect the difference in the valuation of the early-stage companies and more mature technology projects.
The results of the analysis might be used both for the research of mechanics of the project potential evaluation and for the optimization of the venture funds’ organizational design in order to simulate the investments into early-stage companies.