Picture of virus under microscope

Research under the microscope...

The Strathprints institutional repository is a digital archive of University of Strathclyde research outputs.

Strathprints serves world leading Open Access research by the University of Strathclyde, including research by the Strathclyde Institute of Pharmacy and Biomedical Sciences (SIPBS), where research centres such as the Industrial Biotechnology Innovation Centre (IBioIC), the Cancer Research UK Formulation Unit, SeaBioTech and the Centre for Biophotonics are based.

Explore SIPBS research

When our chip comes in ... how do venture capitalists make informed decisions when appraising investments in high-tech firms whose inventions are still in the early stages of development?

Reid, Gavin C. and Smith, Julia A. (2004) When our chip comes in ... how do venture capitalists make informed decisions when appraising investments in high-tech firms whose inventions are still in the early stages of development? Financial Management, May. pp. 30-32. ISSN 1471-9185

Full text not available in this repository. (Request a copy from the Strathclyde author)

Abstract

Venture capitalists are becoming distinctly jittery about current proposals to force the consolidation of accounts of all firms within their portfolios. The new procedures will take effect in January, yet many experts believe that consolidation doesn't make much sense. The issue of how to evaluate and account for the risks inherent in early-stage high-tech firms is therefore of topical importance. The government and the UK accounting bodies are interested in promoting high-tech investments. From a financial reporting point of view, venture capitalists are interested in how firms value the intangible assets tied up in their intellectual property, as protected by patents, licences, trademarks etc. FRSlO recommends 3 ways to value an intangible: 1. the amount it could be sold for, 2. the difference between cost and fair value if it has been purchased, or 3. by reference to any active market where frequent trading of such an asset occurs.