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Article
Effect of Professional Background on Venture Capital Proposal Evaluation
Journal of Small Business Strategy
  • Richard B Carter, Iowa State University
  • Howard E. Van Auken, Iowa State University
Document Type
Article
Publication Date
1-1-1992
Abstract

This paper reports on the differences in investment related activities and evaluation criteria of venture capitalists having a business background compared to venture capitalists having a non-business background . Data was collected from a nationwide survey of 72 venture capitalists. The results show that venture capitalists having a non-business" background invest in earlier stages of the firm. require a shorter payback period and make more follow-up investments than business background venture capitalists. The non-business background venture capitalists place greater importance on the uniqueness of the product , the cost structure of the project and the entrepreneur' s health and less importance on exit procedures than business background venture capitalists.

Comments

This article is from Journal of Small Business Strategy 3 (1992): 45.

Rights
This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Copyright Owner
Van Auken et al
Language
en
File Format
application/pdf
Citation Information
Richard B Carter and Howard E. Van Auken. "Effect of Professional Background on Venture Capital Proposal Evaluation" Journal of Small Business Strategy Vol. 3 Iss. 1 (1992) p. 45 - 55
Available at: http://works.bepress.com/howard-vanauken/12/