While underdiversification implies lower valuation, entrepreneurs often see ventures as being more valuable than do investors. Why

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While underdiversification implies lower valuation, entrepreneurs often see ventures as being more valuable than do investors. Why might the entrepreneur value an opportunity more highly?

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Entrepreneurial Finance Strategy, Valuation, And Deal Structure

ISBN: 9780804770910

1st Edition

Authors: Janet Smith, Richard Smith, Richard Bliss

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Question Posted: Apr 30, 2024 01:02 AM

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While underdiversification implies lower valuation, entrepreneurs often see ventures as being more valuable than do investors. Why

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Entrepreneurs often value ventures more highly than investors due to several reasons 1 Emotional Attachment Entrepreneurs often have a strong emotiona...View the full answer

Entrepreneurial Finance Strategy, Valuation, And Deal Structure

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