Effect of Professional Background on Venture Capital Proposal EvaluationJournal of Small Business Strategy
AbstractThis 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.
RightsThis 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 OwnerVan Auken et al
Citation InformationRichard 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/