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Raising sufficient capital to finance strong growth is one of the biggest challenges for startups, especially due to the difficulty of persuading equity providers to invest in an endeavor in which opportunities are accompanied by an extraordinarily high level of risk. Achieving a high valuation helps startups in receiving additional funding and satisfying existing shareholders, yet value-based management is rarely associated with the startup environment. In view of this, it is especially important to be aware which valuation methods are appropriate to value young ventures, since they are the basis of the determination of value drivers and hence of the performance of value-based management. This thesis conducts an explorative study by reviewing the shareholder value approach, as the origin of value-based management, and scrutinizing the characteristics as well as challenges of creating an informational basis for a discussion regarding the transferability of this concept to the startup environment. Beyond that, the thesis seeks to provide an approach of value-based management for startups that have not gone public yet, as much complexity comes with the absence of a publicly accessible market price. To accomplish this goal, it develops a model that carries continuously changing valuation methods based on the distinct characteristics of each business life cycle phase that a startup goes through and the preferences of the main investor groups. Derived from these methods are qualitative and quantitative value drivers that should be constantly managed to achieve a higher valuation during the financing series where the possibility for founders and investors is given to capitalize the created shareholder value. The discussion around the applicability of the shareholder value approach clearly reveals that it is possible in theory and lists various benefits for the entrepreneurs and their investors which go along with this concept. Further, the model illustrates how value-based management is shaped by a three-sided interplay of characteristics related to startups, investment criteria of investors and varying valuation methods.