Effect of Professional Background on Venture Capital Proposal Evaluation

  • Richard B. Carter Iowa State University
  • Howard E. Van Auken Iowa State University

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.

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Published
1992-01-17
How to Cite
CARTER, Richard B.; VAN AUKEN, Howard E.. Effect of Professional Background on Venture Capital Proposal Evaluation. Journal of Small Business Strategy, [S.l.], v. 3, n. 1, p. 45-55, jan. 1992. ISSN 2380-1751. Available at: <https://libjournals.mtsu.edu/index.php/jsbs/article/view/428>. Date accessed: 21 oct. 2018.
Section
Articles