Thursday, December 19, 2019

Investigating The Correlation Between Non Financial Factor...

4.1. Sample Origination There are three main sources of information used in this study. First, since valuation details are often highly confidential, the only reliable source is the proprietary research compiled by Pitchbook, where I’ve gathered the information relating to the company and in the investment round. Data gathered from Pitchbook provides the names of the founders, date of establishment, date of investment round, investment round size, and valuation of the company at the time of investment. This data is used to derive the regression model analysing the relationship of the human capital of the founding team and valuations placed by the VC investors. The dataset for the regression model intended to investigate the statistical relationship between the non-financial factor and valuation is collected from Pitchbook. Since valuations in VC rounds are often highly confidential, the sample size is quite small, including 107 companies with 230 founders in total. However, as elaborated in section 4.3, the descriptive statistics for the two separate datasets demonstrated that the dataset is representative of the larger start-up community. For the logistic regression analysing the probability of successful investment, as defined by an exit via MA or IPO, I rely on data compiled by Crunchbase, a database dedicated to VC funding, start-up companies in the high-tech sectors (technology and biotechnology). Crunchbase provides the data relating to the company, including theShow MoreRelatedThe Huge Loss Of Volkswagen Ag ( Fra )2069 Words   |  9 PagesIn 2015, between September 18 and September 28, the market capitalization of Volkswagen AG (FRA: VOW) fell from $95 billion to $60 billion. This staggering loss is not commonly seen in stock markets, especially in â€Å"blue chips† companies. The massive loss in share price is linked to the emission cheating scandal shaking the fundamentals of one of the biggest car manufacturing in the world. 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