The authors find that the valuations of venture-backed startups in which investment funds invest are driven more by the valuations of their peers than by their fundamentals, such as operating performance.

Paper by Björn Imbierowicz and Christian Rauch (June 12, 2024).

As startups often experience significant valuation changes when they go public, they also examine the share price performance of startups from private to public companies.

Available at SSRN »