Essays on the implications of contractual cash flow rights for venture capital investment valuation

Venture capital (VC) plays an increasing role as part of the private equity asset class and the general investment continuum. The lack of transparency due to limited reportings and market data obstructs a concise view on VC investment value and performance. This thesis aims to shed some light on VC investment peculiarities and their effect in valuation terms. It primarily reflects on the implications of contractual rights on the investment value. In the first chapter, I present an approach to integrate the multi-perspective of VC investment and analyze the interaction effects of control and cash flow rights on the feasibility of follow-on funding based on the value position of investors. In the second chapter, I present a joint study by Prof. Dr. Schwetzler, Dr. Schreiter, Dr. Lodowicks and myself where we propose a valuation framework that is applied to a sample of primarily European ventures to derive investment level values and assess misvaluation when using simple heuristics instead. In the third chapter, a joint work by Dr. Schreiter, Dr. Lodowicks and myself is presented where we develop a prediction model that allows to derive more accurate estimates of VC investments.

Level thesis:degree_level

thesis.doctoral

Grantor dc:publisher

HHL Leipzig Graduate School of Management

Year

2020

Author dc:creator

• Kaboth, Julian

Contributors dc:contributor

• Schwetzler, Bernhard
• Lahmann, Alexander

• venture capital
• valuation
• investment valuation
• portfolio valuation
• preferential rights
• liquidation preferences
• pay to play rights
• empirical prediction models
• Bewertung
• Beteiligungsbewertung
• Portfoliobewertung
• Sonderrechte
• Liquidationspräferenzen
• Pay-to-play Rechte
• empirische Forecast-Modelle