University of Twente Student Theses
Investment decision making of corporate venture capitalists : the importance of multiple startup evaluation criteria in high-tech industries
Weilinghoff, Philip (2018) Investment decision making of corporate venture capitalists : the importance of multiple startup evaluation criteria in high-tech industries.
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| Abstract: | Purpose: Corporate venture capitalists are of growing importance to fund high-tech startups. Their selection procedure is however until today not fully understood. This research provides a detailed picture of how CVCs evaluate startups before an investment and why certain attributes are used. Furthermore, a computer-based model is built based on the gained knowledge. Design and methodology: The research focusses on German CVCs which invest in series A startups in high-tech industries. A single case study is used for several pre-tests, followed by 14 verbal protocol analysis with investors from the most important investment regions of Germany. Findings: Corporate venture capitalists apply 8 criteria, characterized by 30 attributes to gain a profound picture on a startup. Therewith they are able to decide on an investment and build their post-investment strategies based on the identified strength and weaknesses. The ‘go to market strategy’, the ‘strategic fit’, the ‘unmet need’, and the ‘development to be accomplished’ belong to the most important attributes of CVC decision making. Furthermore, several attributes have knock-out impacts. The main motivations to take attributes into consideration are the expected impact on the startup’s success and the contribution to the fulfillment of the corporate’s investment strategy. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 83 economics, 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/76659 |
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