University of Twente Student Theses

The process of finding an acquirer for ventures from venture builders: a networking game Proposing a step-by-step process for finding a suitable buyer for acquisition of scale-up ventures coming out of venture builders within the Dutch venture building environment.

Bentvelsen, Christian C.N. (2022) The process of finding an acquirer for ventures from venture builders: a networking game Proposing a step-by-step process for finding a suitable buyer for acquisition of scale-up ventures coming out of venture builders within the Dutch venture building environment.

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Abstract:	This is an explorative study about the acquisition process of ventures coming from venture builders. This study was conducted by interviewing 5 venture builder founders/CEOs and conducting a survey among 56 PE and VC firm employees. This study finds that looking for an acquirer for a venture is a networking game. All 5 venture builders mentioned networking in the interviews and network is one of the biggest factors in deal sourcing among the 56 PE and VC employees. Furthermore, we find that the sentiment of PE and VC firms about venture builders is mostly neutral because of the lack of track record, focus and worries about the parties involved and cap table. Besides that, the importance of 11 different investment criteria was measured based on the opinions of VC and PE firms. We found that the most important investment criteria were the management team, growth potential and added value of the product of both PE and VC firms. We also found that VC firms put more value on the innovation, growth potential and ownership structure than PE, which could be explained by the stage in which VC invests. Lastly, we propose a 5-step process for finding acquirers based on the findings in this report. This five-step process consists of (1) creating a good investment case, (2) Defining target group, (3) create message, (4) choose channel(s), and (5) start communicating, this model shows the importance of a network and encourages venture builders to start building a network in their vertical as early as possible and can be seen in figure 1.
Item Type:	Essay (Master)
Clients:	Entweder, Almelo, Nederland
Faculty:	BMS: Behavioural, Management and Social Sciences
Subject:	85 business administration, organizational science
Programme:	Business Administration MSc (60644)
Link to this item:	https://purl.utwente.nl/essays/89505
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