Valuation of a brazilian spin-off of cloud computing aimed for small and medium-size enterprises

Authors

DOI:

https://doi.org/10.5585/riae.v19i2.13978

Keywords:

Valuation, Evaluation of companies, Cloud computing, Entrepreneurship, Small and medium-sized enterprises.

Abstract

Objective: The aim of this study is to analyze the strategy of valuation of technolgy companies, especially of a Brazilian cloud computing spin-off , focused on the market of small and medium-sized enterprises, in order to guide entrepreneurs in this sector to the phases of participation negotiation to raise funds for Venture Capital investor for the purpose of expanding or shutdown of the business.

Methodology: A case study was carried out in a specific spin-off, , focusing on solutions of software for business management for small and medium-sized enterprises.

Originality: The market for cloud computing grew, in Brazil, 47% in 2016, what indicate a great potential for new companies focused on this segment.  and that offer these services to their customers. Thus, it becomes relevant, the study of growth, expansion or sales strategies of these enterprises.

Main results: The application of the results obtained from this study can be useful to guide the fundraising strategies for the purpose of expanding these cloud computing enterprises through their evaluation both for future entrepreneurs and investors.

Theoretical Contributions: This study involves the application of a valuation method for a spin-off of a company that operates in the cloud computing segment for Venture Capital Investors fundraising, which represents a contribution for both entrepreneurs and investors.

Downloads

Download data is not yet available.

Author Biographies

Liliam Sanchez Carrete, Universidade de São Paulo

Professora de Finanças da FEA - USP e atua na AUSPIN, Agência USP de Inovação como Assessora da Coordenação na gestão do PPT - Programa Parceiro Tecnológico da USP. Doutorado em Administração pela Universidade de São Paulo (2007). Mestrado em Administração de Empresas pela Fundação Getulio Vargas - SP (2001). Graduada em Administração pela Universidade de São Paulo (1993).

Decio Krakauer, Universidade de São Paulo

Mestrado Profissional em Empreendedorismo pela Fundação Universidade de São Paulo (2018). Graduação em Engenharia de Produção pela Universidade de São Paulo (1987).

Jane Aparecida Marques, Universidade de São Paulo

Professora Livre Docente em Comunicação e Marketing. Atua no Programa de Pós-Graduação Interunidades em Estética e História da Arte e do Programa Profissional em Empreendedorismo, ambos da Universidade de São Paulo. Professora do curso de Graduação em Marketing da Universidade de São Paulo. Mestre e Doutora em Ciências da Comunicação pela Universidade de São Paulo.

References

Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1-2): 11-26.

Carrete, L. (2012). Quanto vale o meu negócio: o empresário no divã. São Paulo: Saint Paul.

Chesbrough, H., & Rosenbloom, R. (2002). The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Industrial and Corporate Change, 11(3): 529-555.

Clarysse, B., Wright, M., & Velde, E. van de. (2010). Entrepreneurial origin, technological knowledge, and the growth of spin-off companies. Journal of Management Studies, 48(6): 1420-1442, September.

Cooper, A. C., Gimeno-Gascon, F. J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 1(2): 13-30.

Dahlstrand, A. L. (1997). Growth and inventiveness in technology-based spin-off firms. Research Policy, 26(3): 331-344.

Devece, C., Peris-Ortiz, M., & Rueda-Armengot, C. (2016). Entrepreneurship during economic crisis: success factors and paths to failure. Journal of Business Research, 69(7): 5366-5370.

Etro, F. (2009). The economic impact of cloud computing on business creation, employment and output in Europe. An application of the endogenous market structures approach to a GPT innovation. Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business, 2: 179-208.

Gompers, P., Kovner, A., Lerner, J., & Scharfsteiner, D. (2010). Performance persistence in entrepreneurship. Journal of Financial Economics, 96(1): 18-32.

Gupta, P., Seetharaman, A., & Raj, J. R. (2013). The usage and adoption of cloud computing by small and medium businesses. 2013. International Journal of Information Management, 33(5): 861-874.

Hamilton, B. (2000). Does entrepreneurship pay? An empirical analysis of the returns to self-employment. Journal of Political Economy, 108(3): 604-631.

Joglekar, N. R., & Lévesque, M. (2009). Marketing, R&D, and startup valuation. IEEE Transactions on Engineering Management, 56(2): 229-242.

Kaplan, S. (2011). Entrepreneurial finance and private equity. Chicago: University of Chicago Booth School of Business, Xanedu Publishing.

Kaplan, S., & Ruback, R. (1995). The valuation of cash flow forecasts: an empirical analysis. Journal of Finance, 50: 1059-1094, September.

Krabec, T., & Cizinska, R. (2015). Income based valuation of IT companies: methodological issues related to invested capital. In: Financial Management of Firms and Financial Institutions 10th International Scientific Conference, Ostrava: VŠB – Technical University of Ostrava, 380-390.

Krishnaswami, S., & Subramaniam, V. (1999). Information asymmetry, valuation and the corporate spin-off decision. Journal of Financial Economics, 53(1), July.

Langestein, T., & Uzik, M. (2015). Specifics of company valuation of it companies. In Central European Conference in Finance and Economics – CEFE2015, Herľany, Slovak Republic: Technical University of Košice, 347-356.

Lobo, A. P. (2017). Mercado de computação em nuvem foi de R$ 2,25 bilhões no Brasil. Convergência Digital. Recuperado a partir de http://www.convergenciadigital.com.br/ cgi/cgilua.exe/sys/start.htm?UserActiveTemplate=site &infoid=45964&sid=97.

Ojala, A. (2016). Discovering and creating business opportunities for cloud services. Journal of Systems and Software, 113(2): 408-417.

Rodrigues, R. (2010). A ampliação do valor de uma empresa através da adoção de um novo modelo: o cloud computing. Monografia (Master Business Information Systems) – Pontifícia Universidade Católica de São Paulo, São Paulo.

Schumpeter, J. A. (1982). Teoria do desenvolvimento econômico: uma investigação sobre lucros, capital, crédito, juro e o ciclo econômico. São Paulo: Abril Cultural.

Schwab, K. (2016). A quarta revolução industrial. São Paulo: Edipro.

Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1): 217-226.

Downloads

Published

19.08.2020

How to Cite

Carrete, L. S., Krakauer, D., & Marques, J. A. (2020). Valuation of a brazilian spin-off of cloud computing aimed for small and medium-size enterprises. Revista Ibero-Americana De Estratégia, 19(2), 28–39. https://doi.org/10.5585/riae.v19i2.13978

Issue

Vol. 19 No. 2 (2020): Apr./June

Section

Articles

License

Copyright (c) 2020 Iberoamerican Journal of Strategic Management

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

The author (s) authorize the publication of the manuscript in the journal;

The author (s) guarantee that the contribution is original and unpublished and that it is not being evaluated in another journal (s);

The journal is not responsible for the opinions, ideas and concepts emitted in the texts, as they are the sole responsibility of its author (s);

Editors reserve the right to make textual adjustments and adapt to the publication's rules.

Authors retain the copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Attribution License - 4.0 (CC BY-NC-SA 4.0) that allows the sharing of the work with acknowledgment of authorship and initial publication in this magazine.

Authors are authorized to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (eg, publishing in institutional repository or as a book chapter), with acknowledgment of authorship and initial publication in this journal.

Authors are allowed and encouraged to publish and distribute their work online (eg in institutional repositories or on their personal page) at any point before or during the editorial process, as this can generate productive changes, as well as increase impact and citation of the published work (see “The Effect of Open Access” at http://opcit.eprints.org/oacitation-biblio.html).

Authors can use ORCID for identification. An ORCID identifier is unique to an individual and acts as a persistent digital identifier to ensure that authors (particularly those with relatively common names) can be distinguished and their work appropriately assigned.