Abstract

Understanding the drivers of the value of an entrepreneurial firm is crucial for entrepreneurs, investors and researchers. In contrast with quoted firms, both entrepreneurial firm and investor characteristics may impact the negotiated firm value. The purpose of this paper is to explore how different VC investor types with different goals and different ways of working potentially influence the value of an entrepreneurial firm at a VC investment. This paper addresses two specific research questions. First, do different types of (lead) VC firms explain differences in valuation? We compare valuations of independent VC investors with captive VC investors, university VC investors and government VC investors. In the second research question, we analyze if domestic VC investors differ in their valuations from cross-border VC investors.

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