---
title: Fundraising Pressure and VC Deal Pricing
url: https://www.ml-quant.com/papers/ssrn/4810529/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4810529
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4810529
featured: 2024-05-01
citations: unknown
topic: Other
---


# Fundraising Pressure and VC Deal Pricing

The study suggests venture capitalists may manipulate startup valuations for their own fundraising benefits, questioning the accuracy of derived performance measures.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4810529
- Identifier: SSRN 4810529
- Released: 2021-05-24
- First featured: Quant Letter No. 47 (2024-05-01): https://www.ml-quant.com/issues/2024-05-01/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Other

## Related

- [The Private Capital Alpha](https://www.ml-quant.com/papers/ssrn/4967890/): This study outlines a framework for estimating alpha in private capital, showing notable annual returns for buyouts but unreliable data for venture capital and real estate.
- [Startups Funding Strategies](https://www.ml-quant.com/papers/ssrn/4814476/): The study finds that startup founders, while valuing partnerships with ESG-focused venture capitalists, often prioritize profit-driven investors due to financial concerns, particularly among profit-driven, smaller startups, Republican founders, and high-emission industries.
- [ESG Impact on Private Equity Fundraising](https://www.ml-quant.com/papers/ssrn/4783180/): A study reveals that private equity advisers who disclose negative environmental information in regulatory filings struggle to raise capital.
- [Private Equity and Net Asset Value Debt - Ticking Time Bomb or Ticking All the Right Boxes](https://www.ml-quant.com/papers/ssrn/4838394/): The article highlights the increasing use of net asset value debt (NAV Debt) in private equity buyouts, shifting liabilities to the fund level.
- [Investor Expertise in Private Investments](https://www.ml-quant.com/papers/ssrn/4917788/): Professional investors favor venture capital managers with strong past returns, while individual investors prefer those with elite education but less emphasis on past performance, potentially accounting for a 20% return difference between the two groups, according to a limited partners' experiment.
- [LPX Index Prediction](https://www.ml-quant.com/papers/ssrn/4955587/): The net asset value (NAV) price ratio is a key predictor of future returns for the LPX50 index in listed private equity, especially over long-term investments and excluding financial instability periods.