This article examines how the type of venture investor is related to the market valuation of a startup at the time of its IPO. The focus is on the distinction between corporate venture capital funds and independent venture capital funds. The EV/S multiple is used as the main valuation indicator, since it is better suited to the analysis of fast-growing and often unprofitable startups than profit-based metrics. In addition, underpricing is analyzed as an indicator of uncertainty and differences in market participants’ expectations at the time of the offering. For the empirical analysis, a system of indicators is used, including the startup’s financial characteristics, stage of development, investor parameters, as well as industry, time, and stock exchange effects. It is concluded that the type of venture investor matters for the formation of a startup’s market valuation at the time of the IPO.
Aleksandr Nefedov (Thu,) studied this question.