Venture capital investors, valuation and information: A comparative study of the US, Hong Kong, India and Singapore

Abstract

This paper compares the approaches to investee valuation and sources of information used by venture capital investors in the US, Hong Kong, India and Singapore. The results identify significant differences in respect of the use of asset valuation, earnings before interest, depreciation and amortisation (EBITDA) and options based valuation methods. Significant differences are also identified in respect of the use of various sources of information for valuation, notably the use of business plan data, own due diligence, sales and product information and information relating to entrepreneurs.