Venture capital investment and US family business

Nancy Upton and William Petty

Venture Capital, 2000, vol. 2, issue 1, 27-39

Abstract: Family-controlled businesses are the prevailing form of enterprise throughout the world, making significant contributions to their respective economies. World-wide, an unprecedented number of family businesses are facing ownership and management succession. A critical aspect of succession is finding capital to finance transition. This research addresses the issue of transition financing by reporting the combined results of two surveys, one to venture capitalists and the second to owners of family businesses. The findings clearly suggest that the financing of intergenerational transfers is a significant issue to owners of family-owned firms. Also, we observed that venture capitalists are interested in participating in transition financing, usually in the form of debt or preferred stock combined with sweeteners (warrants or conversion rights). In their evaluation of transition investments, they are particularly interested in the qualifications of the successor, along with the firm's strategic plans.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1080/136910600295792 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:veecee:v:2:y:2000:i:1:p:27-39

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TVEC20

DOI: 10.1080/136910600295792

Access Statistics for this article

Venture Capital is currently edited by Colin Mason and Richard T. Harrison

More articles in Venture Capital from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().