Determinants of Success of German Venture Capital Investments

Michael Schefczyk
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Michael Schefczyk: SAP Chair of Entrepreneurship and Innovation Management, Technische Universität Dresden, D-01062, Dresden, Germany

Interfaces, 2001, vol. 31, issue 5, 43-61

Abstract: Based on literature reviews, I formulated 10 hypotheses for a wide range of determinants of success for German venture capital firms (VCFs). I tested and largely confirmed these hypotheses using bivariate correlation analyses and confirmatory multivariate LISREL models on a data set of 103 transactions by 12 German VCFs. The analyses indicate that emphasizing portfolio companies' managers' qualifications, intensifying cooperation between VCFs and portfolio companies, and ensuring a strong (minority) shareholder position of the VCFs coincide with above average success.

Keywords: FINANCE—INVESTMENT; CRITERIA (search for similar items in EconPapers)
Date: 2001
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