University of Twente Student Theses


Obtaining venture capital funding as a young entrepreneur

Effing, J (2019) Obtaining venture capital funding as a young entrepreneur.

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Abstract:This paper aims to identify similarities between young entrepreneurs who have successfully received venture capital funding, in order to give recommendations to young entrepreneurs who want to fund their business using venture capital. In order to examine the similarities, firstly the decision-making process of venture capitalists needs to be understood. The studied theory suggest five steps in the decision-making process: deal origination, deal screening, deal evaluation, deal structuring and post-investment activities. Within these steps, several criteria can be applied, which are often specific to each individual venture capitalist. The most common criteria are experience, gut feeling and business plan, with many more varying from market volume to commitment. The decision-making processes and criteria applied by venture capitalists have been studied by interviewing different venture capitalists from the Netherlands. From the interviews it was determined that, in accordance with the theory, the venture capital firms usually apply a similar set of base criteria, along with criteria specific to the venture capital firm. Experience is an important factor, but for most interviewed venture capital firms it was a factor with side notes. Along with interviewing venture capitalists, a number of young entrepreneurs that have received venture capital have been analysed.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:83 economics, 85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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