Den dynamiska processen som formar värderingen av startup- och tillväxtbolag - vid en första investering av growth- och venture capital bolag

Abstract

Background: There are several databases that provide data regarding investments made by growth- and venture capital companies in start-up companies and on what valuation the investment is made on. However, there is a lack of studies regarding the dynamic process, the negotiation itself, which leads to start-up companies and investors finally coming to a common valuation. Purpose of the essay: The purpose of the essay is to describe the dynamic process that shapes the final and joint valuation of startup and growth companies in the first investment of venture capital companies and growth capital companies. Method: The choice of method for this essay fell on qualitative interviews that were designed as semi-structured. Eight interviews were conducted with nine different respondents. Results and conclusion: The results show that the negotiation process is dynamic and complex and that all negotiations are unique. This despite the fact that it has turned out that there is a clear basic process for how a negotiation generally looks from the first contact between the parties until a possible investment. During the dynamic process, comparative valuations with similar companies that have previously received investments are often used to reach a market valuation. This is because no valuation models can be applied to the companies due to the fact that there is too little information about relevant historical data. Distinctive factors that are considered important among the start-up companies that succeed in getting an investment are mainly that the team behind the company has great competence in their industry and that the entrepreneurs are driven and credible. This together with the fact that the start-up company needs to have a business idea that is scalable and that there is a large market in the industry with the potential to carry out a fast and large growth journey.