Venture capitalists, unquoted equity investment appraisal and the role of accounting information

UK venture capitalists use a range of information when making investment decisions. They aim to assess the value of companies they invest in, and rates of return. Venture capitalists vary in their approach according to whether they are independent, with independents also more likely to invest in the early stages of a business. Discounted cash flow estimates tend to be used more by venture capitalists than investment analysts, who are more likely to use asset-based methods.