Determinants of Venture Capital Investments in Tech Start-UPS

Cristian Negrutiu

Romanian Economic Journal, 2022, vol. 25, issue 84, 31-40

Abstract: Tech start-ups and, especially, unicorns have become a hot topic of today business world. Significant amounts of money have been invested in this sector by venture capital funds in the hope of a good return. However, the criteria and determinants of these investments are fuzzy, and the author has identified a gap in the scientific literature. Therefore, the objective of the present paper is to discover the determinants of venture capital investments in tech start-ups. Based on a secondary dataset, a multifactorial regression model is proposed that explains the appetence for investment of venture capital funds into tech start-ups. The model shows that the amount of funding in start-ups will increase as the number of unicorns and exits strengthens.

Keywords: entrepreneurship; venture capital; tech start-ups; unicorns; Threshold regression model (search for similar items in EconPapers)
JEL-codes: G23 G28 M13 O31 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:25:y:2022:i:84:p:31-40

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