The Valuation of Startups in New Markets: an Applied Case in Asteroid Mining
Scott Pepis, Jacob Evans, Pieter de Jong

Abstract
This case study aims to educate students on how to properly evaluate startup companies in new, unproven, and speculative markets. Private equity valuations are notoriously difficult due to the lack of available financial information. We will introduce valuation techniques that could be applied to many startup firms; and in order to provide adequate context for this assignment, we introduce students to the emerging asteroid mining industry. In addition to the valuation of asteroid mining firms, we will also address ways for investors to select the most viable investment option for a 10 to 20-year horizon. We will focus on the asteroid mining industry because this industry provides the best framework for this case study; the industry is in its infancy; and has relatively few startups with very little to no publicly available financial data or historical data. Students will have to use critical thinking and creativity to determine the value for these firms and the financial solvency for the industry as a whole.

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