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Silicon Valley Bank Data Project (view source)
Revision as of 19:51, 28 February 2011
, 19:51, 28 February 2011no edit summary
*[http://www.svb.com/viewprofile.aspx?id=4294968147 Michael Graham] (MGraham@svb.com), Senior Managing Director of SVB Analytics
*[http://www.svb.com/viewprofile.aspx?id=4294967514 Dave Krimm](DKrimm@svb.com), Head of Strategy and Research for SVB Analytics
===Notes From the Meeting===
====Joining Data====
The meeting opened with an impassioned plea from Toby, echoed immediately by the other academics, to be allowed to join the data to other datasets. This could be accomplished in a number of ways, including leaving 'identity identifiers' such as either names or numbers that are linked to names, in the data. SVB did not seem adverse to this.
Obvious examples of dataset which would be joined to the data include:
*Thompson VentureXpert
*SDC Mergers and Acquisitions
*Global New Issues data
*The NBER Patent Data, or other patent data
*Bankruptcy data
Generally, joined data would be available to Haas students/faculty through our library licenses, but not to SVB. SVB has a license to Dow Jones' VentureSource database, though their license does not permit them to see the identities of firms.
====SVB Datasets====
SVB has three datasets that they are considering sharing with us in some fashion. These are:
*The Valuations Data
*The Benchmarking Data
*The CAPMX data
=====The Valuations Data=====
Michael estimated that that SVB has 'valuations' data on 2600 early stage firms, with many firms having multiple valuations conducted over time. [http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_409A Internal Revenue Code 409A] requires that there be no discrepency between an options value and the value of common stock, in part to prevent issue with backdating of options, and that valuations be conducted by a third-party at an arm's length from either the 'service recipient' (i.e. employee/executive/etc) and the 'service provider' (i.e. the firm). Thus firms may have approached SVB to provide them with valuations on the firms common stock potentially every time that there is an event, such as a stock option issue, which would require compliance. SVB has been collecting this data for approximately 4 years.
SVB is interested in (co-)authoring an article on valuation for publication in a (trade) journal. Michael has noticed that option pricing models (i.e. Black-Scholes models) lead to over-valuation of the stock, especially for non-participating preferred stock, and that the use of 'mulitple models' (i.e. those that use simple 1x-2x, 2x-3x, 4+ x valuations) are far more accurate valuations, and would like assistance in exploring this.
=====The Benchmarking Data=====
