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The hardest time to receive financing for a venture is at its earliest stage. These ventures are among the riskiest investments for an investor, which creates a gap in financing that is often bridged through a source of funding called Angel Financing. Angel investors are one of the best providers of early stage funding. This thesis will explain what angel investing is, how they work, and what angels look for. This information will help entrepreneurs be better equipped to find an angel investor for their venture.

During the last decades we have seen a growing number of new start-ups in the service/knowledge sector. These types of companies often have no fiscal assets to secure loans with. What types of financing alternatives are there in those situations? I will in this thesis show that there are two directions to choose between to get financial support. By gathering of information I have been able to show that there are more than one alternative to consider when needing funding and that using different alternatives will lead to different results. I will not say which one is the right one, but that there are different ways and there will be different outcomes depending on which one you choose. The study also shows that there are a lot of things you need to take into consideration before using a venture capitalist. An empirical study is made between two companies that decided to use different ways to get the financial support they required. The result shown in this study is that the entrepreneurs own financial situation affect what direction the entrepreneur will take.

The development of venture capital industry is not only about the effective operation of venture capital firm, but also its supporting environments. The venture capital firms in different countries have different operation modes, for instance, the organizational structure, the source of finance and the investment behavior. The reason of the differences is that the venture capital supporting environments such as economy, culture, laws and regulations are different in various countries.   The objective of this research is to study the venture capital supporting environments in China and analyze the role of government on how to improve these supporting environments. After research questions are decided, the author analyzes and combines the selected previous researches in different countries in order to build a more systematic, scientific and complete theoretical framework to conduct the case study in China.   In the case study, all seven venture capital supporting environments in China are studied. By analyzing the facts, the author finds out that some environments such as laws and policies and financial environment have developed rapidly in past years and become more and more adapt to the development of venture capital. However, some other environments, especially the culture environment have negative effects on venture capital and can not be easily changed within a short period of time. Based on these findings, the author tries to find out some possible actions that the government can do to reduce these limitations and improve the venture capital supporting environments.     Key words: venture capital; supporting environment; venture business; venture capitalist

Entrepreneurs perceive and manage risk differently than investors (Palich & Bagby, 1995). As a result, entrepreneurs may underestimate the extent to which their ventures are perceived to be risky by a potential investor. Consequently, the entrepreneur is left with making assumptions that could be detrimental in obtaining the necessary capital to launch and grow the business. The purpose of this study was to determine if there is a common set of perceived critical risk factors among a group of experienced investors that would cause them to reject a deal out of hand. The research methodology chosen for this study was the Delphi Technique, which consisted of three rounds of surveys with a group of 18 experienced Angel Investors and Venture Capitalists. The process identified 82 critical risk factors across 7 categories. Over half of these factors were rated between ‘Important’ and ‘Critically Important’ at a consensus rate of greater then 70%. Each participant reported an average of 11 critical risk factors, yet they rated more than 40 as ‘Important’ or ‘Critically Important’, suggesting there are conscious and subconscious factors involved in the decision process. Subjective factors such as relationship were rated with higher importance than more objective measurable factors such as revenue or market share. Venture Capitalists, as a group, had higher rates of consensus than the Angel Investors and there were distinct differences between each group regarding which factors are most important. The study is significant because it rated subjective based factors along with objective factors showing that investors tend to place more importance on trust and relationship building in the early stages of the investment process. The study also provided a framework for understanding the complexity of investment decision-making for the benefit of investors, entrepreneurs, and those who educate and mentor entrepreneurs. Finally, the study is significant for helping entrepreneurs understand the differences in perspective between Angel Investors and Venture Capitalists.

Dans un contexte où la création d’entreprises, l’innovation et le développement de territoires innovants sont une préoccupation des politiques publiques aussi bien territoriales que nationales, la question de leur articulation reste en débat. Dans la littérature, de nombreux travaux étudient soit la contribution de l’investissement en capital à l’émergence des clusters et à leur développement soit la contribution de l’entrepreneur au développement économique d’un territoire. La relation entre ces acteurs associés à l’innovation et au territoire est rarement étudiée. Cette thèse a pour objectif de montrer qu’investisseur en capital et entrepreneur sont deux éléments essentiels du fonctionnement des territoires innovants et qu’il existe un lien à double sens entre ces acteurs et le territoire. Les territoires innovants favorisent la présence de l’entrepreneur et de l’investisseur et le bon fonctionnement de leur relation ; en retour les entrepreneurs associés aux investisseurs, génèrent des externalités positives pour le territoire et enrichissent la base de connaissances de celui-ci. Nous étudions la relation entrepreneur investisseur sous l’angle d’un duo qui produit des ressources pour le territoire, appelé le « duo entrepreneur investisseur en capital » définit comme l’ensemble des interactions, la mise en relation et l’apprentissage mutuel entre investisseurs et entrepreneurs. Pour aller au-delà de la contribution du duo au développement économique sous l’angle de la création d’entreprises, la thèse analyse la contribution du duo au capital savoir territorial défini comme l’ensemble des informations et connaissances scientifiques et techniques produites, acquises, combinées et systématisées par les entreprises et les institutions locales pour être utilisées dans un processus de création de valeur et selon un projet territorial défini. Les approches mobilisées pour construire le cadre théorique s’intègrent dans les théories économiques et managériales de l’entrepreneur, de l’innovation et du territoire. L’analyse empirique se base sur les pôles de compétitivité de Lyon Grenoble Chambéry (PCLGC) ; le choix des pôles est justifié par une analyse statistique. Elle a donné lieu à la construction d’une base de données quantitatives qui regroupe des informations consolidées sur les 172 nouvelles entreprises des sept pôles, sur les processus d’innovation et sur le financement en capital de ces entreprises. L’analyse se fonde également sur la réalisation de 2 enquêtes qualitatives auprès de 15 entrepreneurs et de 12 investisseurs en capital. L’analyse quantitative montre que le processus de transformation de la connaissance en entreprises par les entrepreneurs fonctionne au sein des PCLGC. Les investisseurs en capital sont présents auprès des nouvelles entreprises des pôles et permettent la transformation de la connaissance en entreprises. Les pôles favorisent la mise en relation des entrepreneurs et des investisseurs. La relation entre entrepreneur et investisseur est fondée sur l’intérêt financier, la confiance, et la recherche du succès de l’entreprise. Elle base son fonctionnement sur des processus de mise en réseau, d’apprentissages et d’interactions. Les entrepreneurs et les investisseurs mettent en commun des connaissances et produisent des connaissances scientifiques et techniques codifiées mesurées par les brevets et des connaissances tacites. Notre travail montre l’avantage que peuvent avoir les investisseurs à se regrouper de manière formelle et informelle, et l’importance de créer des synergies locales entre les entrepreneurs. Concernant les politiques publiques, la thèse montre l’intérêt pour les acteurs publics de favoriser l’ensemble des actions permettant la mise en relation et les collaborations entre les investisseurs en capital et les entrepreneurs dans les territoires des pôles de compétitivité en vue de remplir l’objectif de faire des pôles « des usines à produits ». / In a context where new firms, innovation and the development of innovative region are a main concern of both national and regional public policies, the question of their articulation remains in debate. In the literature, many papers study either the contribution of venture capital to the emergence of clusters and their development or the contribution of the entrepreneur to the economic development of a territory. The relationship between these actors associated with innovation and the territory is rarely studied. The main objective of this thesis is to show that the venture capitalist and the entrepreneur are two essential elements of the functioning of innovative territories; and that there is a two-way relationship between these actors and the territory. Namely, innovative territories are favorable to the presence of entrepreneurs and venture capitalists and to the well-functioning of their relationship. In return, entrepreneurs associated with venture capitalists in a duo generate positive externalities for the territory and enrich the knowledge base of the territory. In this thesis, we study the venture capitalist-entrepreneur relationship from the point of view of a duo that produces resources for the territory, called the "venture capitalist-entrepreneur duo" that we define as the set of interactions, networking and mutual learning between venture capitalists and entrepreneurs. To go beyond the duo's contribution to economic development in term of firms' creation. We analyse the duo's contribution to territorial knowledge capital, which is defined as the knowledge base produced, possessed and used by the set of local enterprises and institutions. The approaches mobilized to build the theoretical framework of the thesis are integrated in the economic and managerial theories of the entrepreneur, the innovation and the territory. The empirical analysis is based on the competitiveness clusters of Lyon Grenoble Chambéry (LGC). The choice of the competitiveness clusters has been justified by a statistical analysis. A quantitative database has been built for this purpose. It brings together consolidated information on 172 new firms in the seven clusters concerned, on the innovation processes and on the venture capital financing of these firms. The analysis is also based on the completion of two qualitative surveys within 15 entrepreneurs and 12 venture capitalists. The quantitative analysis shows that the process of transforming knowledge into firms by entrepreneurs works within LGC's competitiveness clusters. Venture capitalists are very active among entrepreneurs in the clusters and enable the transformation of knowledge into new firms. The clusters promote the linking of entrepreneurs and venture capitalists. The relastionship between entrepreneur and venture capitalist is based on the financial interest, the trust, and the search for the success of the firms. It bases its functioning on networking, learning and interactions. Entrepreneurs and venture capitalists share knowledge. Entrepreneurs and VCs produce codified scientific and technical knowledge as measured by patents and tacit knowledge that provides a local knowledge base on venture capital and creates tools to improve the relationship functioning. The thesis shows the advantage that venture capitalists may have in syndicating formally and informally, and the importance of creating local synergies between entrepreneurs. With regard to public policies, the thesis shows the interest for public actors to promote all the actions allowing the connections and the collaborations between venture capitalists and entrepreneurs in the clusters of competitiveness with a view to fulfill the objective of not only producing knowledges but also products.

The explosive growth of ‘accelerators’ in the United States has given entrepreneurs and their startups the opportunity to pursue seed-stage financing. While the specific economic role of accelerators remains unclear, a study comparing the selection of portfolio companies between accelerators and venture capitalists was performed. A difference of means was performed on the responses per question between the collected 19 accelerators’ response and the 100 venture capitalists’ response, recorded from a prior study. It is found that venture capitalists place significantly more weight, than accelerators, on the potential of the startup’s product or service to be proprietary, to enter a high-growth market with little threat of competition within the first 3 years, and to deliver a high financial return within 5 to 10 years. The results also indicate that both accelerators and venture capitalists emphasize different attributes of the entrepreneur and venture team when considering selection.

To date, the usual analysis of an entrepreneur personality is primarily a gut feeling of the venture capitalist and is hard to codify. This paper aims to explore in a qualitative way what it is about the characteristics and the personality of the entrepreneur that influences the investment made by the venture capitalists. These findings will then be used to discuss if an artificial intelligence application can be used to analyze the personality of entrepreneurs. The primary source of information for this paper is interviews with venture capitalists. The authors searched for similarities within the available literature on entrepreneurial personalities and found that the majority of the personality traits mentioned by the venture capitalist can be found in the literature.  The research findings suggest that all venture capitalist value an entrepreneur that has passion for what she is doing and has the ability to get the job done. Additionally, most of the venture capitalist interviewed value an entrepreneur that is coachable, flexible, visionary, and is able to communicate that vision well.  Finally, based on the results, the authors proposed a framework for how an artificial intelligence system can be structured to assess personalities of entrepreneurs.

To date, the usual analysis of an entrepreneur personality is primarily a gut feeling of theventure capitalist and is hard to codify. This paper aims to explore in a qualitative way what itis about the characteristics and the personality of the entrepreneur that influences theinvestment made by the venture capitalists. These findings will then be used to discuss if anartificial intelligence application can be used to analyze the personality of entrepreneurs.The primary source of information for this paper is interviews with venture capitalists. Theauthors searched for similarities within the available literature on entrepreneurial personalitiesand found that the majority of the personality traits mentioned by the venture capitalist can befound in the literature.The research findings suggest that all venture capitalist value an entrepreneur that has passionfor what she is doing and has the ability to get the job done. Additionally, most of the venturecapitalist interviewed value an entrepreneur that is coachable, flexible, visionary, and is ableto communicate that vision well.Finally, based on the results, the authors proposed a framework for how an artificialintelligence system can be structured to assess personalities of entrepreneurs.

雖然近年來的文獻已嘗試以有系統的方式，探討創投的參與投資，是否有助於提昇被投資公司的價值，然而這些實證研究卻鮮少剖析創投是透過何種途徑來影響被投資公司的價值。再者，此類研究往往從被投資公司上市、上櫃時的股票折價幅度，來探討創投的介入是否對於被投資公司的價值有所貢獻，不過卻較少針對被投資公司的長期經營績效和上市、上櫃後的股價績效進行分析，特別是有關創投對於被投資公司的經營績效影響之相關研究仍付之闕如。因此，本研究嘗試為相關研究另闢蹊徑，以期瞭解創投的參與投資是否確實為被投資公司帶來實質的貢獻。 首先，經由文獻探討和個案分析得知，將代理理論引用至本研究主題確實具有合理性。因此，本研究以代理理論的觀點，嘗試克服傳統「基本主理人──代理人的模式」之限制，並藉由Von Neumann-Morgenstern 效用函數而針對創投的介入對於被投資公司在經營績效和技術上的影響進行理論模式推導，故本研究的理論模式不僅強調技術的提昇為刺激高科技公司產出增加的原動力之外，同時亦考量監控機制和激勵制度彼此可能具互補性的特質。 本研究的各個研究假說分別演繹自理論模式結論或歸納自文獻探討暨個案分析。在實證研究方面，本研究將實證分為三個層次：第一層次係比較國內有創投參與投資的上市、上櫃公司和無創投參與投資的上市、上櫃公司，其在長期經營績效與短期股價表現上是否具有差異性。實證結果發現，有創投參與投資的公司，其在長期經營績效和短期股價表現上皆較無創投參與投資的公司來得差；不過，創投的介入確實承擔了被投資公司本身的部分風險。 實證的第二層次則在於檢視，創投是透過何種途徑來影響被投資公司的績效表現。實證結果顯示，主要創投的持股比例、參與被投資公司的創投家數、創投佔被投資公司的董監事席位比例、創投所承擔被投資公司的技術股股本佔總資本額的比例，或創投投資被投資公司的時點越早，皆對於被投資公司的長期經營績效表現有顯著的正面影響。 另外，創投佔被投資公司的董監事席位比例、創投所承擔被投資公司的技術股股本佔總資本額的比例、主要創投成立的年數越長，或創投參與被投資公司的時點越早，則對於被投資公司上市、上櫃後的短期股價表現有顯著的正面影響。 實證之第三層次，旨在探討創投的參與投資是否加速被投資公司上市、上櫃的時間。根據實證結果得知，有創投參與投資的公司，其從公司設立至上市、上櫃的時間確實較無創投參與投資的公司來得短，此意謂創投可加速被投資公司上市、上櫃的時間，使得被投資公司可以較早在資本市場上募得資金。 綜合上述實證結論，囿限於國內創投的籌資壓力和追逐聲譽的壓力，以及在「逆選擇」的前提之下，導致國內有創投參與投資的公司其績效表現較無創投參與投資的公司來得差。然而，本研究的實證結果並不否定創投的能力，換言之，本研究的實證結果肯定創投的專業能力和監控能力，同時亦肯定創投在國內產業升級上所扮演的重要角色。 / Although recent work attempts to explore what venture capitalists do and whether venture capitalists' involvement adds value for venture-capital-backed firms, it does not investigate the ways in which venture capitalists add value to their portfolio companies.　Moreover, recent empirical research usually investigates whether venture capitalists' involvement reduces underpricing when their portfolio firms going public, but it seldom explicitly examines the effect of the presence of venture capitalists on operating performance of venture-capital-backed firms.　As a matter of fact, a number of issues relate to the relationship between venture capitalists and entrepreneurs have not been fully addressed.　Therefore, the objective of this study is to fill both theoretical and empirical gaps. This study applies agency theory which captures the essence between venture capitalists and entrepreneurs, and use Von Neumann-Morgenstern utility function to analyze the effect of venture capitalists' involvement on their portfolio firms' operating performance and skills.　Our theoretical model not only considers the importance of new technology in modern economies, but also includes the possibility that these two control mechanisms, monitoring and incentives, might be complementary. Moreover, empirical results of this study reveal several important findings.　First, we contrast venture-capital-backed firms with companies that have no venture-capital backing. Our empirical results indicate　operating performance and after-market stock performance of firms with venture-capital backing are both inferior to that of firms without such backing, and the differences are statistically significant.　However, venture-capital-backed firms seem to have lower levels of firm risk. Secondly, empirical results provide evidence that the fraction of equity holdings of the lead venture capitalist, the number of venture capitalists, the number of the venture-capital-backed firm's board seats held by venture capitalists, stock compensation system and the length of time that venture capitalists have invested are all positively associated with operating performance of venture-capital-backed firms. In addition, the number of the venture-capital-backed firm's board seats held by venture capitalists, stock compensation system, the age of the lead venture and the length of time that venture capitalists have invested are positively associated with after-market stock performance of firms with venture-capital backing.　Not surprisingly, empirical results also provide evidence that venture-capital-backed firms go public earlier than non-venture-capital-backed firms. Overall, the results of this study support the idea that venture capitalists do provide much more than financing to their portfolio firms.　However, in a venture capital setting, adverse selection, grandstanding and money-recycling are important concerns; these　concerns might explain why performance of venture-capital-backed firms are significantly inferior to that of non-venture-capital-backed firms.　Indeed, our findings support the notion that venture capitalists' investment behavior does influence performance of their portfolio firms in a number of ways due to their skills, expertise and monitoring abilities.