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Intellectual Capital in the Venture Capital Industry

Ramstrand, Marcus and Richter, Carl (2010)
Department of Business Administration
Abstract
The purpose of this thesis is to answer the question: Is the present venture capital firm IC-consideration satisfactory when evaluating investment opportunities? The study is conducted with a deductive approach where a qualitative method is used to find the answer of our purpose. The research design used for this is problem analysis, where we have analyzed the views of a number of respondents through interviews. The study is based on the theories of Intellectual Capital, Venture Capital, Knowledge theory and due diligence. The thesis has its base in a number of semi-structured interviews with Venture Capitalists, Entrepreneurs and other, supporting, respondents. Our conclusions point to that the venture capital firms take intellectual... (More)
The purpose of this thesis is to answer the question: Is the present venture capital firm IC-consideration satisfactory when evaluating investment opportunities? The study is conducted with a deductive approach where a qualitative method is used to find the answer of our purpose. The research design used for this is problem analysis, where we have analyzed the views of a number of respondents through interviews. The study is based on the theories of Intellectual Capital, Venture Capital, Knowledge theory and due diligence. The thesis has its base in a number of semi-structured interviews with Venture Capitalists, Entrepreneurs and other, supporting, respondents. Our conclusions point to that the venture capital firms take intellectual capital in consideration in a satisfactory way. They do not however evaluate these in a structured quantitative way, but instead utilize a qualitative, unstructured, evaluation in order to ensure the quality of the factors. We see no added value in using a more structured IC-framework, as the VCs have such a unique insight in their investment opportunities and that every opportunity is unique, why a framework is difficult to use. Our conclusion is that the intellectual capital factors are determinative whether the venture capital firms are to invest in a venture or not, and that the more quantitative due diligence is then utilized in a later stage to determine the size of the investment. Lastly, the IC-factors do affect the value of the investment opportunity. (Less)
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author
Ramstrand, Marcus and Richter, Carl
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Intellectual Capital, Venture Capital, Knowledge Theory, Due Dilligence, Knowledge Firm, Management of enterprises, Företagsledning, management
language
Swedish
id
1615804
date added to LUP
2010-06-07 00:00:00
date last changed
2012-04-02 18:06:33
@misc{1615804,
  abstract     = {The purpose of this thesis is to answer the question: Is the present venture capital firm IC-consideration satisfactory when evaluating investment opportunities? The study is conducted with a deductive approach where a qualitative method is used to find the answer of our purpose. The research design used for this is problem analysis, where we have analyzed the views of a number of respondents through interviews. The study is based on the theories of Intellectual Capital, Venture Capital, Knowledge theory and due diligence. The thesis has its base in a number of semi-structured interviews with Venture Capitalists, Entrepreneurs and other, supporting, respondents. Our conclusions point to that the venture capital firms take intellectual capital in consideration in a satisfactory way. They do not however evaluate these in a structured quantitative way, but instead utilize a qualitative, unstructured, evaluation in order to ensure the quality of the factors. We see no added value in using a more structured IC-framework, as the VCs have such a unique insight in their investment opportunities and that every opportunity is unique, why a framework is difficult to use. Our conclusion is that the intellectual capital factors are determinative whether the venture capital firms are to invest in a venture or not, and that the more quantitative due diligence is then utilized in a later stage to determine the size of the investment. Lastly, the IC-factors do affect the value of the investment opportunity.},
  author       = {Ramstrand, Marcus and Richter, Carl},
  keyword      = {Intellectual Capital,Venture Capital,Knowledge Theory,Due Dilligence,Knowledge Firm,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Intellectual Capital in the Venture Capital Industry},
  year         = {2010},
}