Research On The Valuation Of Internet Start-ups Based On Business Model

Since the 1990 s, with the rapid development of C hina’s Internet economy, the way people work, live has undergone enormous changes. Especially as the arrival of the twentyfirst century, with the spring up of a variety of new Internet businesses, the phenomenon of the high valuation has been concerned by the society. The study of how to assess the value of the Internet start-ups have been concerned by more and more scholars. Compared with the traditional enterprise, the Internet start-ups has its unique features, especially the differences in the business model. Based on the analysis of the literature, this paper argues that the traditional methods of business valuation have limitations in assessing the value of Internet start-ups, for not taking the business model into account, which is a very important factor to the business valuation of the Internet start-ups. Therefore, it is necessary to find a more appropriate assessment methods so that the business model can be taken into account in the business valuation of the Internet start-ups.Firstly, based on the analysis of the characteristics of the Internet start- ups and the theory of the business model, this paper try to expound the importance of the business model to the value of the Internet start-ups, and the limitations of the traditional valuation methods. Then, using the real options model and fuzzy comprehensive evaluation method, the paper build a valuation model for Internet start-ups based on the business model. Finally, to verify the model’s applicability by applying it to the business valuation of the Vipshop, and comparing the results with Vipshop’s market value.