RESEARCH ON VENTURE CAPITAL FIRMS’ ‘INVESTMENT BEHAVIOR A REVIEW’

Poonam Khanna, Lemaro Thompson and Michael McDonald ()
Additional contact information
Michael McDonald: UTSA

Working Papers from College of Business, University of Texas at San Antonio

Abstract: During the last four decades, the venture capital (VC) industry has become an economically dominant force in the U.S. economy. Over 1,300 companies that were founded during this period are currently listed on major U.S. stock exchanges. Of these, 40% were VC-backed and were responsible for 85% of the total R&D spending in 2014. Given the economic importance of VCs, a vast amount of academic research has studied the VC industry. A particular area of interest in this research has been the factors that predict which new ventures will receive VC funding. Research prior to 2007 had identified several factors such as the personality and characteristics of the founder, the product, the market and the financial considerations as important in VC funding decisions. Since 2007, researchers have been successful in identifying certain new criteria that predict VC funding decisions and have also uncovered certain nuances in the effects of the criteria previously identified. This paper reviews this new research on VC funding decisions.

Keywords: venture capital; new venture; startup; funding criteria (search for similar items in EconPapers)
JEL-codes: D81 G24 L26 M13 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2015-03-12
References: Add references at CitEc
Citations:

Downloads: (external link)
http://interim.business.utsa.edu/wps/mgt/0013MGT-815-2015.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

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:tsa:wpaper:0197mgt

Access Statistics for this paper

More papers in Working Papers from College of Business, University of Texas at San Antonio Contact information at EDIRC.
Bibliographic data for series maintained by Wendy Frost ().