Unpacking Startup evaluation: A Four-Decade Review of Drivers and Analytical Approaches

Chrysavgi Mitsi, George Peppas, Antonios Sarantidis, Augustinos Dimitras, Christina Diakaki

Hellenic Open University

                                                                           Abstract

Startup evaluation is a critical yet fragmented domain in entrepreneurial finance. Research on this topic is comparatively underdeveloped and lacks coherence, with existing studies displaying heterogeneous perspectives, fragmented focal areas, and diverse methodological orientations. To bring clarity to this fragmented field, we conduct a systematic literature review of approximately 60 studies published between 1984 and 2025, covering nearly four decades and a wide array of methodologies. We analyze these publications in depth and identify around 40 distinct startup-evaluation drivers, clustering them into five overarching macro-themes: Entrepreneur Characteristics, Firm Characteristics, Investor Characteristics, Market Conditions, and Deal Conditions. We then map how these drivers influence startup evaluation outcomes and construct an integrative meta-model that organizes the five macro-themes in their appropriate chronological positions along the evaluation process.

Methodologically, the reviewed studies employ a wide spectrum of approaches, including qualitative case studies, structured interviews, fuzzy logic models, multi-criteria decision analysis (MCDA), regression modeling, machine learning algorithms, and hybrid decision-support systems. The diversity in methodology reflects the complexity of startup evaluation.

Our review also uncovers important research gaps and highlights several promising directions for future investigation in the startup evaluation field. These findings suggest promising avenues for future research, particularly the development of holistic, hybrid models that can better capture the multidimensional and uncertain nature of startup evaluation. Ultimately, this study contributes to a more structured and analytically robust understanding of the evaluation mechanisms that shape early-stage entrepreneurial finance.

JEL: G24, G32, M13, C44

Acknowledgments: This work was supported by the Hellenic Foundation for Research and Innovation (H.F.R.I.) under the research project DESUS, which is implemented in the framework of H.F.R.I. call “3rd Call for H.F.R.I.’s Research Projects to Support Faculty Members & Researchers” (H.F.R.I. Project Number: 23669).