Venture Capital Investor Behaviour in the Backing of UK High Technology Firms: Financial Reporting and the Level of Investment

Gavin Reid and Julia Smith

No 510, CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: This paper is an empirical investigation into the ways in which venture capitalists value (and invest in) high technology firms, focusing on financial reporting, risk disclosure and intangible assets. It is based on questionnaire returns from UK investors in diverse sectors, ranging from biotechnology, through software/ computer services, to communications and medical services. This evidence is used to examine: (a) the usefulness of financial accounts; (b) the implications of technopole investment; (c) the extent of investor control over the investee’s AIS; and (d) the role of investor opinion (e.g. on disclosure, due diligence and risk reporting) in determining the level of equity provision.

Keywords: venture capital; high technology; accounting information; intangible assets (search for similar items in EconPapers)
JEL-codes: D81 D82 G24 G32 M13 M41 O31 (search for similar items in EconPapers)
Date: 2005-06
New Economics Papers: this item is included in nep-cfn, nep-ent, nep-fin and nep-ino
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:san:crieff:0510

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