The behavior and determinants of market to revenue ratios in public and private capital markets is examined. Three samples are analyzed : (1) all publicly traded stocks listed at some time on the NYSE/AMEX/NASDAQ in the 1980 to 2004 period, (2) sample of over 300 so-called “internet...

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....

The term ‘investor relations' (IR) often refers only to the very formal and primarily anonymous relations and communication between publicly traded companies and their (potential) shareholders. Especially for young and not yet publicly traded companies (so-called start-ups), it can be shown...

This study shows how venture capital investors can identify potential biases in multi-year management forecasts before an investment decision and derive significantly more accurate failure predictions. By advancing a cross-sectional projection method developed by prior research and using...

Technological discontinuities pose serious challenges to top managers' attention. These discontinuities, which often occur at the fringes of an industry, are usually driven by innovative and, often, venture capital-backed start-ups creating new products and transforming existing industries in...

This paper analyses the factors that drive the dynamics of French new technology-based and venture-backed companies, using a hand-collected database with 216 companies created between 1998 and 2005. The Venture Capital (VC) firms can choose between three outcomes: the company exits from their...

The conventional wisdom is that entrepreneurs seek financing for their high-growth, high-risk start-up companies in a particular order. They begin with friends, family, and bootstrapping. Next they turn to angel investors, or accredited investors (and usually ex-entrepreneurs) who invest their...

Observable resources, particularly patents, alliances, and team experience, are known to impact a start-up's ability to attract venture capital financing. In this context they potentially fulfill a two-fold function: as productive assets and, likely, as signals of characteristics of a venture...

Venture capital is an alternative source of funding for SMEs in Malaysia. Recognizing the importance of this industry toward economic growth, the Malaysian government has initiated various strategic plans. Despite promising growth of the venture capital market, past empirical findings reveal...