Venture capital firms valuation in bull and bear markets: Swedish evidence
Artikel i vetenskaplig tidskrift, 2018

This study uses an experimentally designed case study to investigate Swedish venture capital firms’ valuation practices in two different economic contexts—the economic boom (bull market) of 1999 and the downturn (bear market) of 2002. Studying these periods enables an investigation of changes in valuations, and implicitly, required rate of return, rules of thumb, and valuation models used. Contrary to expectations, in times of heightened stringency and economic downturn, venture capital firms employed fewer valuation models than during boom times. This study thus enriches the knowledge of venture capitalists’ valuation practices, in general, and the effect of market conditions on them. Furthermore, the results can also aid researchers developing more relevant theories of valuation, valuation models, and valuation practices.

investor behaviour

dot-com bubble

venture capital



Anders Isaksson

Chalmers, Teknikens ekonomi och organisation, Innovation and R&D Management

Öystein Fredriksen

Linköpings universitet

International Journal of Entrepreneurship and Innovation Management

1368-275X (ISSN) 1741-5098 (eISSN)


Innovation och entreprenörskap




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