Members of Cogent Valuation and the San Francisco-based investment research firm VentureOne teamed up over an eighteen month period to examine the private venture capital financings of 479 technology and life sciences companies that successfully completed their initial public offerings of common stock between January 1993 and June 1997.
The findings of the study were published in the Journal of Business Venturing in September 1998, and again in the Journal of Private Equity in spring 1999. The study explains changes in the value of venture capital-backed high technology and life sciences companies from their initial equity-financing round through the interim rounds to their initial public offering.
Through careful analyses of VentureOne’s proprietary database of venture capital investments, we made observations of venture investors’ activities and identified key factors involved in the pricing of venture capital investments in these companies. The findings and significant drivers of pricing from that study are still relevant today.
Cogent Valuation/Venture One Study
