Entrepreneurial Finance in the Twenty-first Century, a Review of Factors Influencing Venture Capitalist’s Decision

@article{Vazirani2021EntrepreneurialFI,
  title={Entrepreneurial Finance in the Twenty-first Century, a Review of Factors Influencing Venture Capitalist’s Decision},
  author={Ashish Vazirani and Titas Bhattacharjee},
  journal={The Journal of Entrepreneurship},
  year={2021},
  volume={30},
  pages={306 - 335}
}
Investments in new ventures are risky due to lack of conventional form of quantitative information and untested products. Venture capitalists (VCs) are seen to target such new ventures for high-risk premium but with little success. Existing research has investigated and identified a variety of qualitative factors that impact VCs’ investment decisions; however, many research gaps still exist. Works published in the last two decades show the evolution in the preference of factors with the focus… 

References

SHOWING 1-10 OF 75 REFERENCES
The driving forces of venture capital investments
Abstract We have examined the volatility and macroeconomic drivers of venture capital (VC) investments in the past 17 years from 1995 to 2011. We find that VC investments in the United States (US) by
Special Issue on University Entrepreneurship and Technology Transfer: Organizational Endowments and the Performance of University Start-ups
TLDR
The study analyzes how resource endowments affect the likelihood of three critical outcomes: that new ventures attract venture capital financing, experience initial public offerings, and fail and concludes that the social capital of company founders represents an important endowment for early-stage organizations.
The Determinants of Venture Capital in Europe — Evidence Across Countries
This article analyses the determinants of European venture capital activity. The main novelty of our work is in accounting for the idiosyncrasies of the European venture capital market. In
Venture capital in Europe: social capital, formal institutions and mediation effects
Venture capital (VC) as an industry has existed for more than 50 years, yet it has only moderately developed beyond the USA despite numerous trials of governments to foster it. Vast research
How Do Venture Capitalists Make Decisions?
We survey 885 institutional venture capitalists (VCs) at 681 firms to learn how they make decisions across eight areas: deal sourcing; investment selection; valuation; deal structure; post-investment
The political and legal determinants of venture capital investments around the world
This paper investigates the political and legal determinants of cross-country differences in venture capital (VC) investments. Our results show strong and positive effects of a favorable
Venture capitalists' decision policies across three countries: an institutional theory perspective
This paper examines the influence of economic institutions upon venture capitalists' (VCs) decision policies. We conducted policy-capturing experiments on 119 VCs across three countries, representing
The Changing Latitude: Labor‐Sponsored Venture Capital Corporations in Canada
Manuscript Type. Empirical. Research Question/Issue. This paper seeks to understand the role corporate governance and government policy plays in the portfolio choices of the labor‐sponsored venture
...
...