Determinants on the Successful Investment of Venture Capital
DOI:
https://doi.org/10.54097/zsnvkp39Keywords:
Venture Capital, Startup, Valuation, Deal Structure.Abstract
A successful venture capital investment means investors put money into projects or enterprises with high risks but potentially high returns. Academic staffs have been calling for further research on relevant information about venture capital, but there is no specific research about the determined factors of successful venture capital investment in the relevant literature. This paper may make you more aware of the influencing factors of venture capital, so as to help you make more comprehensive investment decisions or inspire you to conduct in-depth research in related fields. This paper finds the conclusion mainly through searching the relevant literature on venture capital and comparing it to the investment examples of individual companies. By analyzing the advantages of investors and the positive impact to the company, the paper continuously compares and evaluate and finally find out the three determined factors that have the greatest impact on venture capital investment. These are management team, valuation and deal structure respectively. Venture capital investment is an important way for small companies to further expand their scale, and it also reflects the changing trend of the world economy to a certain extent.
Downloads
References
Gompers, P. A., & Lerner, J. (2001). The Venture Capital Revolution. Journal of Economic Perspectives, 15 (2), 145 – 168.
Sahlman, W. A. (1990). The Structure and Governance of Venture-Capital Organizations. Journal of Financial Economics, 27 (2), 473 – 521.
Zarutskie, R. (2008). The Role of Top Management Team Human Capital in Venture Capital Markets: Evidence from First-Time Funds. Social Science Research Network.
Gompers, P. A., Gornall, W., Kaplan, S. N., & Strebulaev, I. A. (2020). How Do Venture Capitalists Make Decisions? Journal of Financial Economics, 135(1), 169 – 190.
Miloud, T., Aspelund, A., & Cabrol, M. (2012). Startup Valuation by Venture Capitalists: An Empirical Study. Venture Capital, 14 (2–3), 151 – 174.
Cumming, D. J., & Dai, N. (2011). Fund Size, Limited Attention and Valuation of Venture Capital Backed Firms. Journal of Empirical Finance, 18 (1), 2 – 15.
Köhn, A. (2017b). The Determinants of Startup Valuation in the Venture Capital Context: A Systematic Review and Avenues for Future Research. Management Review Quarterly, 68 (1), 3 – 36.
MacMillan, I. C., Kulow, D. M., & Khoylian, R. (1989b). Venture Capitalists’ Involvement in Their Investments: Extent and Performance. Journal of Business Venturing, 4 (1), 27 – 47.
Sykes, H. B. (1990c). Corporate Venture Capital: Strategies for Success. Journal of Business Venturing, 5 (1), 37 – 47.
Souitaris, V., & Zerbinati, S. (2014b). How Do Corporate Venture Capitalists Do Deals? An Exploration of Corporate Investment Practices. Strategic Entrepreneurship Journal, 8 (4), 321 – 348.
Steier, L., & Greenwood, R. (1995b). Venture Capitalist Relationships in the Deal Structuring and Post-Investment Stages of New Firm Creation. Journal of Management Studies, 32 (3), 337 – 357.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
How to Cite
