In a market economy, what people are willing to pay determines something’s value. Airline tickets are a good example. For most of the major airlines, the price to purchase a seat the day of a flight seems to be some multiple of how much the airline thinks they can get away charging versus any drive to actually see the seat used. This supply-demand principle falls apart though with valuations set for startup companies funded by equity investors, such as angels or venture capitalists. In the risk capital business, a number of possible factors influences a startup company’s value – most tied to future markets, comparables, or dreams of big exits. Recent research from the University of British Columbia and Stanford University suggests just how surprisingly risky – and overly optimistic – this approach is.

Because they focus on attracting mature firms through relocation incentives, job creation strategies at the state level are often misguided, according to the Center on Budget and Policy Priorities. Despite this, many metropolitan regions are increasingly focusing their efforts on attracting and retaining the high-growth firms responsible for an oversized share of job growth and economic output. While considerable research has focused on the important role that startups and high-growth firms play in the national economy, relatively little has been done to apply a regional lens to this phenomenon. New research, tracks high-growth firms over a multiple-year period to assess how their changing operations can inform regional economic development.

Over the last decade, accelerators have spread from a Silicon Valley phenomenon to communities across the country. Questions, however, remain on their impact on startups and whether they aid in creating a strong startup ecosystem. In How Do Accelerators Impact High-Technology Ventures?, Sandy Yu from UC-Berkeley found that the accelerator process helps resolve uncertainty around company quality sooner than what is experienced by non-accelerator companies.

In the last twenty years, there has been a critical shift in the technology transfer landscape that calls for a fundamental overhaul of university Technology Transfer Offices (TTOs) from focusing on passive IP management to active startup development, according to a recent SSRN article.