How Good Are VCs at Valuing Technology? An Analysis of Patenting and VC Investments in Nanotechnology

27 Pages Posted: 23 Jul 2008

See all articles by Federico Munari

Federico Munari

University of Bologna - Department of Management

Laura Toschi

University of Bologna - Department of Management

Date Written: July 19, 2008

Abstract

This paper analyzes how VC firms evaluate the patent portfolios of start-up companies in their financing decisions. On one hand, we determine whether the amount of VCs' financing is associated with three dimensions related to technological portfolios: patent counts, patent scope and the number of core technology patents. On the other hand, we examine whether the valuation of patents in the financing decisions varies across different types of VC firms, depending on their degree of industry specialization and affiliation. We provide empirical evidence from a sample of 332 VC-backed companies in the nanotechnology sector.

Keywords: Venture Capital, Patent Portfolios, Specialization, Nanotechnology

Suggested Citation

Munari, Federico and Toschi, Laura, How Good Are VCs at Valuing Technology? An Analysis of Patenting and VC Investments in Nanotechnology (July 19, 2008). Available at SSRN: https://ssrn.com/abstract=1158467 or http://dx.doi.org/10.2139/ssrn.1158467

Federico Munari (Contact Author)

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
Bologna, Bologna 40126
ITALY
051-2093954 (Phone)
051-2093949 (Fax)

Laura Toschi

University of Bologna - Department of Management ( email )

Via Capo di Lucca, 34
40126 Bologna
Italy
00390512090214 (Phone)

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