A Model of Venture Capitalist Investment Activity

摘要: The paper describes the activities of venture capitalists as an orderly process involving five sequential steps. These are 1 Deal Origination: processes by which deals enter into consideration investment prospects, 2 Screening: A delineation key policy variables delimit prospects to a manageable few for in-depth evaluation, 3 Evaluation: assessment perceived risk and expected return on basis weighting several characteristics prospective decision whether or not invest determined relative levels return, 4 Structuring: negotiation price deal, namely equity relinquished investor, covenants limit 5 Post-Investment Activities: assistance in areas recruiting executives, strategic planning, locating expansion financing, orchestrating merger, acquisition public offering. 41 provided data total 90 had received serious their firms. questionnaire measured mechanism initial contact between capitalist entrepreneur, venture's industry, stage financing product development, ratings 23 characteristics, potential risk, vis-i-vis invest. modal represented database was start-up electronics industry with production capability place seeking $1 million median outside financing. There is high degree cross-referrals capitalists, particularly purposes co-investors. Factor analysis reduced deal underlying dimensions Market Attractiveness size, growth, access customers, Product Differentiation uniqueness, patents, technical edge, profit margin, Managerial Capabilities skills marketing, management, finance references Environmental Threat Resistance technology life cycle, barriers competitive entry, insensitivity business cycles down-side protection, Cash-Out Potential future opportunities realize capital gains results regression analyses showed be R2 = 0.22. Perceived 0.33. Finally, discriminant correctly predicted, 89.4% cases, willing commit funds risk. reactions seven who reviewed model's specification were used test its validity.