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Venture Capitalists’ valuation criteria for new ventures in the screening phase: an empirical study using the verbal protocol method

Remmen, Dario Lino LU and Meyer-Scharenberg, Alexander (2013) ENTN19 20131
Department 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:
author
Remmen, Dario Lino LU and Meyer-Scharenberg, Alexander
supervisor
organization
course
ENTN19 20131
year
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},
  keyword      = {Investment-Process,venture capitalist,verbal protocol,screening phase,evaluation criteria,processual research,criteria research},
  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},
}