Is a name worth 10-14% discount

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Did you know that top venture capital firms with a certain reputation get a 10-to-14 percent discount when it come to making an investments in start-ups, according to this study.

bq. The evidence suggests that VCs’ “extra-financial” value may be more distinctive than their functionally equivalent financial capital. These extra-financial servicesn can have financial consequences.

Venchar believes that this is good start, and I for one agree. Perhaps as deals become more transparent, we can hope that the true value of a VC firm will emerge as well.

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