search query: @author Laamanen, T. / total: 5
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| Author: | Seppa, T. J. Laamanen, T. |
| Title: | Valuation of venture capital investments: empirical evidence |
| Journal: | R. and D. Management
2001 : VOL. 31:2, p. 215-230 |
| Index terms: | VALUATION VENTURE CAPITAL CAPITAL INVESTMENT |
| Language: | eng |
| Abstract: | Using the valuation data of 421 US venture capital transactions and 176 initial public offerings, the authors test a simple binomial valuation model in modelling the risk-return profiles of venture capital investments. The authors find that the model is consistent with the previous knowledge on the risk-return profile of venture capital investments. The results also confirm the hypotheses that early-stage ventures have higher implied risk and implied volatility of the returns than more established ones. Additionally, the authors analyse the predictive power of the binomial pricing model and compare it to corresponding 'traditional' models that utilize risk-adjusted rates of return. The author construct one-step ex post return forecasts for the sample ventures and compare the results to the actually realized returns. |
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