Search results for "Venture"
showing 10 items of 156 documents
Valuing Common and Preferred Shares in Venture Capital Financing
2012
Abstract This article compares five different methodologies to value common and preferred shares with liquidation rights in a single-period setup of venture capital financing: the venture capital (VC) method; discounted cash-flow valuation with the Capital Asset Pricing Model (CAPM); discounted cash-flow valuation with market model in logs; a risk-preference-based approach; and the real options approach. The risk preference and the real option methodologies are the only ones that can properly account for the contingency in preferred stock. With small financings and small multiples the choice of methodology is not critical; however, with stronger preference rights, the VC method, the CAPM, a…
A Model for Estimating Cash Flows in Firms Backed by Venture Capital
2013
Venture Capital only backs firms for a short period of time. When the time to exit arrives, the firm must inevitably be valued in order to obtain a basis for negotiating the exit price. Discounted cash flow is precisely one of the valuation methods that are used most by Small and Medium-sized Enterprises (SMEs).
Venture capitalists, investment appraisal and accounting information: a comparative study of the USA, UK, France, Belgium and Holland
2000
The differences between the information used for the pre-investment valuation and the valuation methods used by venture capital investors in five countries (USA, UK, France, Belgium and Holland) are empirically studied. The analysis is based on postal questionnaire surveys of representative samples of senior venture capitalists in each country. Differences are found, which may be attributed to the dominant corporate governance mechanism or the level of development of the venture capital market. Between-country differences persist even after taking into account between-country differences in the relative importance of investment stages and venture capital types. Apparently similar systems an…
Venture capitalists' decision-making in small equity markets: a case study using participant observation
2004
Despite significant academic research undertaken in the field of venture capital decision-making process, the dimension and maturity of equity market has not yet been considered as an important contextual factor. Aiming at developing an understanding on how venture capitalists (VCs) select early-stage projects in small equity markets, a pilot study using participant observation technique has been conducted in a Portuguese venture capital firm. The findings indicate that the decision-making process and the criteria used by VCs in this market context differ significantly from those used in the developed equity markets. Regarding the decision-making process as a whole, it appears to be more in…
Contract and Asset Values in Venture Capital Financings
2009
In venture capital financings a venture capitalist buys some fraction of a company, for a stated amount of money, through preferred shares. It is common practice in empirical and theoretical analyses to infer from this transaction a value for the entire company, which we call the contract value. Owners do not hold shares with the same rights and so the contract value misrepresents the company value of all assets (asset value). This paper studies a stylized venture capital market, calculates the ratio of contract to asset value, and derives the expected returns both at the level of venture capital funds and at the company level. We study quantitatively the impact on econometric analyses and …
Access to Finance: Baltic Financial Markets
2014
Abstract Access to finance is considered one of the main obstacles to successful financial market development. Access to finance was second-ranked most pressing problem faced by companies in the Euro Area and one of the main barriers to company's innovation capacity. The study results highlight the need to recognize that countries require sound and well-functioning financial markets. Only in this case financial markets can provide much needed sources of investments such as sound banking loans, properly regulated securities exchanges, venture capital, and other resources.
Optimization of Cultural Heritage Virtual Environments for Gaming Applications
2020
Serious games are games with a purpose beyond entertainment and are widely acknowledged as fruitful tools for learning and developing skills across multiple domains, including educational enhancement. In the last few years, the world of serious games has widely increased. The use of these types of games can aid in classrooms to not only help the students learn concepts but also to improve their motivation to do so. However, designing games necessitates very specialized personnel and the process can often be costly and slow. The adaptions of the design to the implantation phase are also difficult and the process needs more focus. The challenge of this study was to create a game within the co…
Corporate Venture Capital follow-on investments: the role of co-investors
2018
CVC investments allow corporates the option to internalize startups’ knowledge and technologies through follow-on investments. Since acquiring a backed startup is not always a guarantee of success, corporates should consider which are the most appropriate conditions under which it is beneficial to acquire the startup. Under the theoretical lens of Real Option theory, we examine the conditions under which a CVC investment may evolve into different kind of CVC follow-on investments. We suggest that the CVC characteristics that mitigate both endogenous and exogenous uncertainties positively affect the corporate’s decision to acquire a backed startup. In addition, we argue that the presence of …
Sounds of the Cold War: gendered submarine narratives
2015
The article discusses different narrative and discursive ways in which American and Soviet submarine narratives of the Cold War period scripted nuclear-age submarine masculinity as a ‘structure’ of experience and a ‘structure’ of feelings different from vision-centred technologies of violence and warfare. The comparative discussion of the selected submarine narratives about Cold War underwater adventures is in no way exhaustive. But it allows looking into narrative constructions of submarine masculinity as articulations of subtle ‘gender’ modifications in the cultural normative ideologies of the competing projects of hegemonic war-related masculinity, otherwise, perceived as coherent and si…