Venture Capitalists’ valuation criteria for new ventures in the screening phase: an empirical study using the verbal protocol method
(2013) ENTN19 20131Department of Business Administration
- Abstract (Swedish)
- This study looks at the investment decision-making process of institutional Venture
Capitalists. Prior research has shown that general criteria for the valuation of new
ventures have not significantly changed over time. Studies looking at the stage-specific
criteria however consider different factors important. Using the verbal protocol
method in the screening phase with two venture capitalists, we identified the
uniqueness of the product, the financial projections and the market demand as the most
relevant criteria when evaluating a business proposal. These findings indicate
similarities as well as differences with the “general-criteria-research” and the “stagespecific-
research”. Based on the identified evaluation criteria,... (More) - This study looks at the investment decision-making process of institutional Venture
Capitalists. Prior research has shown that general criteria for the valuation of new
ventures have not significantly changed over time. Studies looking at the stage-specific
criteria however consider different factors important. Using the verbal protocol
method in the screening phase with two venture capitalists, we identified the
uniqueness of the product, the financial projections and the market demand as the most
relevant criteria when evaluating a business proposal. These findings indicate
similarities as well as differences with the “general-criteria-research” and the “stagespecific-
research”. Based on the identified evaluation criteria, implications for
entrepreneurs that are looking for funding were outlined. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/3879005
- author
- Remmen, Dario Lino LU and Meyer-Scharenberg, Alexander
- supervisor
- organization
- course
- ENTN19 20131
- year
- 2013
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Investment-Process, venture capitalist, verbal protocol, screening phase, evaluation criteria, processual research, criteria research
- language
- English
- id
- 3879005
- date added to LUP
- 2013-06-25 10:57:23
- date last changed
- 2013-06-25 10:57:23
@misc{3879005, abstract = {{This study looks at the investment decision-making process of institutional Venture Capitalists. Prior research has shown that general criteria for the valuation of new ventures have not significantly changed over time. Studies looking at the stage-specific criteria however consider different factors important. Using the verbal protocol method in the screening phase with two venture capitalists, we identified the uniqueness of the product, the financial projections and the market demand as the most relevant criteria when evaluating a business proposal. These findings indicate similarities as well as differences with the “general-criteria-research” and the “stagespecific- research”. Based on the identified evaluation criteria, implications for entrepreneurs that are looking for funding were outlined.}}, author = {{Remmen, Dario Lino and Meyer-Scharenberg, Alexander}}, language = {{eng}}, note = {{Student Paper}}, title = {{Venture Capitalists’ valuation criteria for new ventures in the screening phase: an empirical study using the verbal protocol method}}, year = {{2013}}, }