This study provides evidence of significant biases in multi-year management forecasts by analyzing a proprietary dataset on venture-backed start-ups in Germany. We find that revenues and expenses are highly overestimated in each of the investigated one- to five-year-ahead planning periods....

This study investigates the role of trademarks in the start-up valuations of venture capitalists (VCs). Our results show that the number and breadth of trademark applications have inverted U-shaped relationships with the financial valuations of start-ups by VCs. The findings also indicate that...

Square, Inc. is a provider of hard- and software enabling small merchant businesses to accept card payments. The company was founded in 2009 by, among others, Jack Dorsey who still runs the company to this day. Based in San Francisco, the company has been part of Silicon Valley's Unicorn-iverse,...

The valuation of early-stage technology companies is challenging due to: the lack of clear operating history; disruptive new business models; a rapidly changing landscape for new entrants; and the unpredictable competitive push-back of powerful incumbent players. Revenue based multiples are...

The pre-investment due diligence is a comprehensive systematic investigation, verification and evaluation of the prospective project before funds are committed. The paper aims to develop a comprehensive due diligence and audit framework to facilitate consistent evaluation of investment...

Valuation of cleantech remains a new area within peer reviewed literature. Most economic/finance journals contain information on venture capital, or valuation methodologies. However, there isn't a significant body of information available on venture capital valuation, with respect to cleantech....

This study uses an experimentally designed case study approach to investigate Swedish venture capital firms' valuation practices in two different economic contexts – the economic boom (bull market) of 1999 and the downturn (bear market) of 2002. A key finding in our study is that during...