Digitisation, quantitative analysis, and data-driven methods have been used for investment decision support for more than two decades within the finance sector, however there are great differences of its adoption in different parts of the financial market. One part of the market that has not yet achieved a high level of adoption is the Venture capital (VC) industry. In this study, quantitative analysis will be applied to a dataset of 25430 early stage start-ups in Europe to determine which characteristics of a founder and executive team are most influential when predicting start-up success. This study is part of an effort towards the digitisation of the industry, enlightening quantitatively robust insights into evaluating the teams of new ventures, and reducing bias in the venture capital investment process. It is also part of an effort in bringing insights to current and aspiring entrepreneurs about the most important start-up team characteristics, something that could be used to become a better entrepreneur or build a more efficient and well balanced entrepreneurial team. / Digitalisering, kvantitativ analys, och datadrivna metoder har använts som support vid investeringsbedömning i mer än två decennier inom finanssektorn. Emellertid finns stora skillnader mellan dess adaption in olika delar av finansmarknaden. En del av marknaden som ännu inte uppnått en hög grad av adaption är riskkapitalindustrin (VC). In denna studie kommer en kvantitativ analys genomföras av 25430 nystartade företag i Europa för att dra slutsatser kring vilken karakteristik hos grundare och chefsteamet som har störst inverkan vid prediktion av vidare företaget blir framgångsrikt eller inte. Studien är en del av en satsning mot att digitalisera industrin, belysa kvantitativt robusta insikter i utvärderingen av start-up-team, och minska bias i investeringsprocessen. Arbetet är också en del av en satsning att bidra med insikter till befintliga och aspirerande entreprenörer om vilken karakteristik som är viktigast för att grunda ett framgångsrikt företag, något som kan användas för att bli en bättre entreprenör eller för att bygga ett mer effektivt och välbalanserat team.

Bakgrund: Venture Capital-bolag spelar en stor roll i finansieringen och utvecklingen av nya och innovativa företag. Bolagen verkar i en miljö där investeringarna innebär ett högt risktagande, och därför är det viktigt att de har en strategi för hur de ska investera. Deras investeringsstrategier är komplexa och tidigare studier visar på olika resultat kopplat till faktorerna portföljsammansättning, avkastningskrav, riskhantering och styrning av portföljbolag. Det är därför viktigt att analysera och bidra med ny kunskap för hur Venture Capital-bolagen går tillväga när de investerar, hanterar risk och samtidigt försöker skapa värde i portföljbolagen. Syfte: Syftet med denna uppsats är att analysera VC-bolagens investeringsstrategier utifrån portföljsammansättning, avkastningskrav, risk och styrning i en svensk kontext. Metod: Studien baseras på en deduktiv ansats och använder en kvalitativ metod. Datainsamlingen består av semistrukturerade intervjuer med 15 representanter från Venture Capital-bolag verksamma på den svenska marknaden. Slutsats: VC-bolagen tenderar att specialisera sig på specifika branscher och investeringsstadier, medan antal bolag och geografiskt fokus varierar. Det enskilt vanligaste avkastningskravet är 25 procent, och relativvärdering är den mest förekommande värderingsmetoden. Både interna och externa risker analyseras, och två riskhanteringsmetoder identifieras. VC-bolagen vill vara aktiva ägare, samtidigt som de ser till portföljbolagens behov för grad av involvering. VC-bolagens investeringsbeslut baseras huvudsakligen på deras riskbenägenhet, kompetens och erfarenhet. / Background: Venture Capital firms play a significant role in financing and developing new and innovative ventures. These firms operate in an environment where investments involve high risk, making it essential for them to have a well-defined investment strategy. Their investment strategies are complex, and previous studies have shown varying results related to factors such as portfolio composition, return requirements, risk management, and governance of portfolio companies. Therefore, it is important to analyze and contribute new knowledge on how Venture Capital firms approach investing, manage risk, and simultaneously strive to create value in their portfolio companies. Purpose: The purpose of this study is to analyze the investment strategies of Venture Capital firms in a Swedish context, focusing on portfolio composition, required return, risk, and governance. Methodology: The study is based on a deductive approach and uses a qualitative method. Data collection consists of semi-structured interviews with 15 representatives from Venture Capital firms operating in the Swedish market. Conclusion: Venture Capital firms tend to specialize in specific industries and investment stages, while the number of companies and geographic focus vary. The single most common required return is 25 percent, and relative valuation is the most frequently used valuation method. Both internal and external risks are analyzed, and two risk management methods are identified. VC firms aim to be active owners, adjusting their level of involvement based on the needs of the portfolio companies. Their investment decisions are primarily based on their risk tolerance, expertise, and experience.

Le capital-risque repose sur un investissement en capital dans des sociétés ayant besoin de financement pour se développer. La rémunération de ce financement, essentiellement basée sur des plus-values de cession des parts acquises, est dépendante de l’environnement économique. Si l’Europe ne connait plus la croissance passée, d’autres pays, couramment qualifiés «d’émergeants » peuvent revêtir un intérêt particulier pour l’investisseur. C’est le cas de l’Inde qui connait une croissance économique considérable aidée par un régime d’investissement étranger qui a été progressivement libéralisé depuis 1991. Cet ouvrage examine donc le régime indien du capital-risque étranger. Il procède pour cela en trois phases. L’ouvrage s’attache dans une première partie à l’étude des différentes procédures d’entrée permettant au capital-risqueur étranger d’investir en Inde. Ces procédures sont au nombre de trois : l’Investissement Direct Etranger qui est une procédure générale d’investissement international dans le capital de sociétés indiennes, l’Investissement Etranger en Capital-Risque qui est une procédure spéciale réservée aux investissements réalisés par des fonds étrangers agréés, et l’investissement au travers d’un fonds d’investissement indien. Sont ensuite étudiés les instruments disponibles en Inde qui permettent la réalisation, sinon l’optimisation d’une opération de capital-risque. Ils peuvent être de capital, de dette ou hybrides. Enfin, l’ouvrage examine la sortie de l’investissement au travers d’une étude de l’introduction en bourse, de la cession et de la liquidation de la société. Cette dernière partie fait apparaitre que si l’Inde dispose d’un système financier extrêmement performant, ses procédures collectives mériteraient d’être améliorées. / Venture Capital is based on an investment in Equity of Companies which need financing to grow. The price of this financing, mainly based on gains from the sale of securities acquired, is dependent on the economic environment. If Europe doesn’t know the past growth, other countries, commonly called as « emerging », may be of particular interest for investors. This is the case of India which is experiencing considerable economic growth helped by a foreign investment regime widely liberalized since 1991. This work examines the foreign venture capital regime in India. It proceeds in three steps. The first part focuses on different entry procedures allowing foreign venture capitalist to invest in India. There are three procedures: Foreign Direct Investment is a general procedure of foreign investment in equity, Foreign Venture Capital Investment is a special procedure reserved for investment by approved foreign venture capital funds, and investment through an Indian Venture Capital Fund. Second part focuses on securities which allow to realize, if not optimize, a venture capital investment. They can be instruments of equity, debt or both. Finally, this work examines the exit of investment though a study of IPO process, sale of security and winding up of company in India. This last part shows that if India has a highly efficient financial system, its bankruptcy regulation needs to be improved.

The purpose of this thesis is evaluate the economic development of firms, which are founded by venture capital through selected economic characteristics. Based on results of the analytical part is evaluated progress of venture capital in selected companies and are formulated founded facts in relation to investment of venture capital.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: Venture capital is a major source of funding for the entrepreneurial community and usually focuses on the early stage, more risk orientated business endeavours. This study explores and identifies the investment criteria used by South African venture capitalists in their venture screening and evaluation process and compares these criteria with the results obtained in similar studies abroad. By identifying the criteria that are deemed as important, venture capitalists can enhance their decision-making process and entrepreneurs can adjust their preparation for venture capital application to maximise their success rate. By alerting entrepreneurs of these criteria, some potentially flawed proposals can be corrected beforehand, hence enhancing the venture capital process for both the venture capitalist and the entrepreneur. By making use of a questionnaire, data was gathered from a population of 16 identified South African venture capitalists, of which 75% replied. The most important criteria was identified by evaluating the mean ratings assigned to them and was found to be, the entrepreneurs honesty and integrity, a good expected market acceptance and a high IRR. The data was further analysed using the Friedman two-way analysis of variance (ANOVA) by ranks test, the Sign test and factor analysis. It was found that the South African venture capitalists, just like their overseas counterparts, rate the entrepreneur and management team, as the most important category of criteria when evaluating new projects for investment. In addition, two lists of factors were identified by using factor analysis to reduce the criteria obtained from the questionnaire. / AFRIKAANSE OPSOMMING: Waagkapitaal is een van die belangrikste bronne van befondsing waarvan entrepreneurs gebruik kan maak. Dit fokus hoofsaaklik op besighede in 'n vroeë besigheid lewensiklus, waar hoër risiko aan die orde van die dag is. Hierdie studie identifiseer en analiseer die beleggings maatstawwe wat gebruik word vir waagkapitaal belegging besluitneming in Suid-Afrika en vergelyk die resultate met soortgelyke studies wat reeds in die buiteland uitgevoer is. Die besluitnemingsproses vir die waagkapitalis kan ook vergemaklik word deur die identifisering van die mees belangrikste maatstawwe en terselfdertyd kan entrepreneurs dit ook gebruik vir beter voorbereiding in hul aansoek om waagkapitaal. Deur entrepreneurs se aandag op die belangrike faktore te vestig kan potensiële swak voorleggings vroegtydig gekorrigeer word, wat 'n positiewe bydrae sal lewer tot die beleggingsproses vir beide die waagkapitalis en die entrepreneur. Daar is gebruik gemaak van 'n vraelys wat gestuur is aan 16 Suid-Afrikaanse waagkapitaal beleggers, 75% het die vraelys voltooi. Deur vergelyking van die gemiddelde waardes is vasgestel dat die belangrikste maatstawwe die entrepreneur se eerlikheid en integriteit, goeie verwagte aanvaarding en aanvraag na die produk en 'n hoë “IRR” is, daarna is die data geanaliseer deur middel van die “Friedman two-way analysis of variance (ANOVA) by ranks test”, die ”Sign test” en “factor analysis”. Daar is bevind dat die Suid-Afrikaanse waagkapitalis net soos sy oorsese eweknie, die entrepreneur en bestuurspan as die mees belangrikste afdeling van maatstawwe ag wanneer gekyk word na nuwe projekte vir beleggings. Daar is ook twee addisionele lyste van belangrike maatstawwe opgestel deur die aantal faktore te verminder deur faktor analise.

Sverige är ett land med förhållandevis många start-ups och Stockholm är den stad i världen med näst mest VC per capita. Ökningen av svenska start-ups är däremot oproportionerlig gentemot ökningen av svenskt VC. Det medför en hårdare konkurrens om riskkapitalet mellan svenska start-ups, vilket i sin tur leder till att det blir svårare för dem att finansiera sin verksamhet. Vidare existerar ett kunskapsgap inom forskningslitteraturen kring VCs finansiella investeringskriterier i allmänhet, och om svenska VCs finansiella investeringskriterier i synnerhet. Studiens syfte är att undersöka och därigenom öka förståelsen kring vilka finansiella investeringskriterier svenska VCs använder sig av för att utvärdera en investeringsmöjlighet i en start-up. En kvantitativ enkätundersökning har genomförts med en kvasiexperimentell design. Studien har tillämpat en deduktiv ansats och utgått från ett realistiskt perspektiv. 27 enkätsvar har genererats som analyserats med hjälp av en Conjoint Analysis och en hierarkisk multipel regression. Resultaten från båda analysmetoderna indikerar att de finansiella investeringskriterier som inkluderats i studien rangordnas enligt följande av våra respondenter: (1) tillväxtpotential internationellt, (2) potentiell avkastning, (3) risk/osäkerhet, (4) tillgång till finansiell information och (5) exit. / Sweden is a country that houses a relatively large amount of start-ups and Stockholm is a city that has the second most invested venture capital per capita in the world. However, the increase of Swedish start-ups is disproportional to the increase of Swedish Venture Capital. As a consequence, the competition between Swedish start-ups to access venture capital is intensifying and it is therefore becoming more difficult for Swedish start-ups to raise capital. Furthermore, research in regard of Venture Capitalits’ financial investment criterions is overall sparse and on the Swedish market almost non-existent. The purpose of this study is to investigate what financial investment criterions bare most importance to Swedish Venture Capitalists when evaluating an investment opportunity. This study uses a quantitative methodology with a survey design. The study takes a deductive approach and applies a realistic perspective. 27 responses were collected and analyzed using a conjoint analysis- and hierarchical multiple regression modell. Our results show that the financial investment criterions included in our study are ranked by our respondents as follows: (1) international growth potential, (2) potential rate of return, (3) risk/uncertainty, (4) accessibility to financial information, and (5) exit.

This study is within the field of impact investments. Impact investors relates to a twofold requirement of both financial return and positive impact from investments. The purpose of this study is to investigate how impact investors assess impact in their investment evaluation processes and how impact is aligned with the requirement on financial return. Literature have addressed the problem of assessing and quantifying impact, but it fails to tell us how impact is incorporated in the pre-investment evaluation of different investment opportunities. The field of impact investments is increasing in popularity among investors and through a qualitative study based on eight semi-structured interviews with impact investors in Sweden, we try to gain insight in how they address the twofold incentive of both financial return and impact.Our findings show that impact investors apply similar evaluation processes as mainstream venture capitalists with the additional assessment of social impact. We find that investors approach the impact assessment in different ways and that there are split views on the ability of measuring impact in the pre-investment phase. The task of combining the financial measurements with impact is found to be challenging due to the contradicting characteristics of the two, as well as the difficulty of measuring social impact. Often the impact aspect is integrated as a pre-investment evaluation “gate”, where a subjective assessment is central. We contribute to literature by addressing the identified research gap and we aim to contribute to social entrepreneurs’ understanding of how investors relate to impact in their investment decision making processes.

Em países como o Brasil, assumido como de desenvolvimento tardio, as empresas de base tecnológica assumem um papel importante no desenvolvimento tecnológico. Nesse sentido, o venture capital torna-se um ator importante como fonte de captação de recursos e auxílio ao sistema de inovação do país. No Brasil, a atuação de venture capital vem crescendo nos últimos anos, mas ainda é incipiente comparativamente a países como EUA e Inglaterra. Esse fato se agrava ao se analisar a atuação do venture capital junto ao setor de biotecnologia no Brasil. As empresas de biotecnologia no Brasil são recentes e o ciclo de desenvolvimento dessas empresas é muito longo. A partir deste contexto, o presente trabalho teve como objetivo a elaboração de uma análise dos principais critérios utilizados pelos fundos de venture capital na tomada de decisão em investir em empresas de biotecnologia e a proposição de um modelo de tomada de decisão para investimento em empresas nesse setor. Para que tais fatores fossem identificados e o modelo elaborado, foi desenvolvida uma pesquisa qualitativa e quantitativa. A pesquisa qualitativa consistiu na realização de entrevistas com cinco fundos por meio das quais foi possível analisar o processo de tomada de decisão por parte destes agentes. A pesquisa quantitativa envolveu a aplicação de questionários em empresas start-ups de biotecnologia com o intuito de serem levantadas algumas variáveis importantes relacionadas a suas características que podem exercer impacto no processo de avaliação do fundo. A proposição desse modelo poderá auxiliar as empresas a desenvolverem ações que possam aumentar a propensão delas em receber investimentos. / In countries like Brazil, known as of late development, technology-based companies play an important role in technological development. In this sense, venture capital becomes a major player as a source of funding and support to the country\'s innovation system. In Brazil, the performance of venture capital has increased in recent years but it is still incipient compared to countries like USA and England. Such fact is aggravated when analyzing the performance of venture capital by the biotech industry in Brazil. Biotech companies in Brazil are recent and the development cycle of these companies is very long. From this context, the present study aimed to prepare an analysis of the main criteria used by venture capital funds in the decision to invest in biotechnology companies and the proposition of a model of decision making for investment in companies in this sector. In order to identify these factors and to develop the model, a qualitative and quantitative research was conducted. The qualitative research consisted of interviews with five funds through which it was possible to analyze the process of decision making by these agents. The quantitative research involved the use of questionnaires in business biotechnology start ups in order to raise some important variables related to the characteristics that may impact on the assessment of the background process. The proposition of this model can help companies to develop actions to increase the propensity for them to receive investments.

Há um crescente interesse das grandes empresas em se aproximarem das startups como forma de desenvolver inovação aberta. Entre as 500 maiores empresas do ranking Forbes Global 500, 262 já têm iniciativas de engajamento com startups de alguma maneira: seja investindo, seja acelerando, incubando, realizando eventos ou buscando outros tipos de relacionamento. Nessa relação, a grande corporação pode se beneficiar da estrutura leve, da propensão a tomar riscos, da velocidade de operação e de tomada de decisão das startups, enquanto as startups podem se aproveitar do acesso à grande base de consumidores, do capital, da credibilidade e da estrutura voltada à eficiência da grande corporação, gerando ganhos mútuos. Para que uma grande empresa tenha sucesso nesse relacionamento, ela precisa saber quais são os seus objetivos, os seus resultados esperados, escolher a melhor forma de engajamento e criar uma operação equilibrada e integrada ao ecossistema empreendedor. Ter clareza de como cumprir essas etapas não é uma tarefa fácil. No mercado brasileiro, o desafio é ainda maior. O tema é recente e não há uma fonte de dados que consolide e analise as principais iniciativas de relacionamento entre startups e grandes empresas e as melhores práticas no país. Por meio de pesquisas exploratórias com dados secundários, este estudo identificou, mapeou e categorizou 137 programas de engajamento entre grandes corporações e startups no país. As informações encontradas foram confrontadas com o levantamento teórico e enriquecidas com informações coletadas em entrevistas com executivos responsáveis por algumas das principais iniciativas existentes no Brasil. Desta forma foi possível construir uma visão do mercado brasileiro e entender o nível de maturidade nessa área. Foi possível também identificar os objetivos das corporações, os modelos de relacionamento praticados, o perfil de interesse em startups, as formas como selecionam esse tipo de negócios, como operam os programas, os riscos envolvidos e as formas de mensuração de resultados. / There is increasing interest from the big companies to be closer to the startups as a way of fostering the open innovation. Among the 500 major companies of the Forbes Global 500 ranking, 262 are already running startup engagement programs in any way: investing, accelerating, incubating, running events or any other kind of relationship. In this relationship, the big company can benefit from the innovation focus, the willingness to take risks, the speed of operation and decision taking of the startups, meanwhile the startups can benefit from the access to the big consumer base, the capital, the credibility and the efficiency of the big corporations. To be successful in this journey the big company have to be clear about what are their objectives, the expected results and chose the best model of engagement to create a program that has to be balanced and integrated with the startup ecosystem. Being clear about how to achieve that can be challenging. The topic is recent and there is little literature about that. In Brazil, the challenge is even greater. There is no data source with consolidated data and information about the main startup engagement programs and its best practices. Trough exploratory research with open data this paper have sourced and categorized 137 startup and big companies engagement programs in the country. The gathered data was analyzed taking in consideration the related bibliography and enriched with information collected from interviews with executives responsible for some of the main initiatives in Brazil. This way it was possible to build a consolidated view of the market and its level of maturity. It was also possible to identify the main objectives of the big companies, the engagement models adopted, the startup target profile, the way they select the startups and run the programs, the risks and how they measure the results

Au Yeung Kin Cheong Dennis and Leung Koon On Albert. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1987. / Bibliography: leaves 128-131.