Abstract
This paper offers the first international comparison (France, Great Britain, United States, and Canada) of the processes used by venture capitalists and underwriters in the valuations of high growth potential companies, focussing in particular on the valuation processes and techniques used and the development and dissemination of valuation-specific knowledge. Differences between two groups and their key determinants are highlighted and tested using a sample of 174 valuation cases across 42 venture capital and 40 underwriting firms. The results support a large reliance on relatively simple valuation methods supported by extensive due diligences, reinforcing the important of negotiations and deal-making in the ultimate valuation results.