IDEAS home Printed from https://ideas.repec.org/a/ids/ijbglo/v17y2016i1p83-110.html
   My bibliography  Save this article

The profile of venture capital investments: the European context

Author

Listed:
  • Carmelo Reverte
  • María del Mar Sánchez-Hernández
  • Alfonso Rojo-Ramírez

Abstract

The aim of this paper is to deepen our understanding of the investment valuation process followed by venture capitalists (VCs) at the European level. Its contribution is two-fold. First, we shed light on the manner in which VCs estimate the investee company's value and operationalise the main variables involved in the practical application of the well-known discounted cash flow method. Second, we study whether the different degree of use of valuation methods across European countries may be explained by differences in institutional characteristics related to the underlying legal regime (i.e., English vs. German vs. French-based legal traditions). Using both univariate and multivariate analysis for a sample of 99 responses obtained from a survey addressed to VCs from the UK, France, Germany and Italy, we find that both legal systems and characteristics of VCs (i.e., experience, preferred investment stage, and main source of funds) do influence in the valuation methods used.

Suggested Citation

  • Carmelo Reverte & María del Mar Sánchez-Hernández & Alfonso Rojo-Ramírez, 2016. "The profile of venture capital investments: the European context," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 17(1), pages 83-110.
    • Handle: RePEc:ids:ijbglo:v:17:y:2016:i:1:p:83-110
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=77568
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Damiano Montani & Daniele Gervasio & Andrea Pulcini, 2020. "Startup Company Valuation: The State of Art and Future Trends," International Business Research, Canadian Center of Science and Education, vol. 13(9), pages 1-31, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbglo:v:17:y:2016:i:1:p:83-110. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=245 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.