This study investigates variability in the importance of investment decision criteria used by venture capitalists in assessing new technology-based ventures and relates the criteria to the subsequent performance of the investment in the new venture. Variability was measured using interval and ordinal scale approaches for both criteria ratings and rankings. The analyses found that the criteria used by venture capitalists form a general hierarchy that is consistently ranked across ventures. However, there are some criteria that do not form part of this hierarchy and whose importance varies depending on the specific venture being evaluated. The criteria that are consistently considered important by venture capitalists can be thought of as necessary conditions for investment. The hypotheses concerning the relationship between the criteria and subsequent deal performance are that:· deal performance can be assessed by venture capitalists earlier for Internet-related ventures than for other-technology based ventures (H1);· Internet-related ventures have more extreme levels of deal performance (H2);· a small number of criteria will distinguish between successful and unsuccessful deal performance (H3);· criteria that do distinguish have above average variability (H4); and· criteria related to first-mover advantage distinguish between successful and unsuccessful deals (H5). The study was conducted in two parts. The original study (n=100) conducted by Bachher (2000) gathered information about the importance of the investment criteria using a web-based survey. The follow-up study (n=40) gathered information about the success of the investments by surveying the original participants and gathering information from the Internet. Limitations of the study include a nonrandom sample, a small sample size for the follow-up survey and the very small number (n=5) of unsuccessful investments identified. Evidence for hypotheses H1 and H2 was in the predicted direction but failed to achieve statistical significance. The evidence is supportive of H3. Evidence for H4 and H5 was not found. Additional analysis of the results suggests that venture capitalists whose investments were ultimately unsuccessful placed less importance on technology-related criteria than did venture capitalists investing in the other ventures. This finding implies that venture capitalists need to perform detailed assessments of the technology of new ventures.

This study investigates variability in the importance of investment decision criteria used by venture capitalists in assessing new technology-based ventures and relates the criteria to the subsequent performance of the investment in the new venture. Variability was measured using interval and ordinal scale approaches for both criteria ratings and rankings. The analyses found that the criteria used by venture capitalists form a general hierarchy that is consistently ranked across ventures. However, there are some criteria that do not form part of this hierarchy and whose importance varies depending on the specific venture being evaluated. The criteria that are consistently considered important by venture capitalists can be thought of as necessary conditions for investment. The hypotheses concerning the relationship between the criteria and subsequent deal performance are that:· deal performance can be assessed by venture capitalists earlier for Internet-related ventures than for other-technology based ventures (H1);· Internet-related ventures have more extreme levels of deal performance (H2);· a small number of criteria will distinguish between successful and unsuccessful deal performance (H3);· criteria that do distinguish have above average variability (H4); and· criteria related to first-mover advantage distinguish between successful and unsuccessful deals (H5). The study was conducted in two parts. The original study (n=100) conducted by Bachher (2000) gathered information about the importance of the investment criteria using a web-based survey. The follow-up study (n=40) gathered information about the success of the investments by surveying the original participants and gathering information from the Internet. Limitations of the study include a nonrandom sample, a small sample size for the follow-up survey and the very small number (n=5) of unsuccessful investments identified. Evidence for hypotheses H1 and H2 was in the predicted direction but failed to achieve statistical significance. The evidence is supportive of H3. Evidence for H4 and H5 was not found. Additional analysis of the results suggests that venture capitalists whose investments were ultimately unsuccessful placed less importance on technology-related criteria than did venture capitalists investing in the other ventures. This finding implies that venture capitalists need to perform detailed assessments of the technology of new ventures.

The subject of this thesis is entrepreneurship policy and the focus is on public support programmes directed to early stages technology-based ventures. It advocates that a broad view should be taken with regard to the type of policies for entrepreneurship that aim at supporting the facilitation of the supported ventures’ ability to link to their surrounding innovation system, in which they can secure their access to crucial external resources. Taking the departure in the perspective that early stages technology-based ventures are vulnerable, this thesis shows that publicly financed entrepreneurship supporting programmes can be motivated because small and newly started ventures have got limited resources, and because the risks, with which they are associated, generally make them unattractive in the eyes of private actors. Among the practical implications of this thesis, the following findings are emphasised: Public support, directed to the very earliest stages of venture development benefits from broadness, for the latter stages, specialisation and a higher degree of selectiveness could be an advantage. Moreover, it is important that the support provided take into account the whole process of business development, i.e. both the issues concerned with product/service and the issues connected to the market. A long-term commitment, cooperation between different actors and information about what support is available, are other aspects that are important for policymakers to consider in their design of public policies to support entrepreneurship. Finally, the importance of evaluative awareness must be emphasised from the very start. / Den här avhandlingen är en sammanläggning av 7 studier kring vilka en kappa med titeln ”Entreprenörskapspolicy: offentligt stöd för teknikbaserade företag” har skrivits. De inkluderade studierna beskrivs kortfattat i slutet av den här sammanfattningen. Syftet med avhandlingen är att analysera skälen till varför statliga interventioner kan vara berättigade, vidare att analysera målsättningar, design och resultat av offentliga program för stöd av nya teknikbaserade företag/projekt och slutligen att identifiera såväl praktiska som forskningsintressanta implikationer för utformningen av framtida stödaktiviteter. Avhandlingen baseras till största delen på olika typer av kvantitativa analyser av Stiftelsen Innovationscentrum (SIC) (studie 2-6). Förutom detta ingår en konceptuell studie där ett ramverk för att utvärdera inkubatorer, främst ur ett ”best practice” perspektiv, har tagits fram (studie 1). Slutligen har jag inkluderat en pågående uppföljningsstudie av Vinnovas program Vinn Nu (studie 7). Avhandlingen förespråkar en bred syn på begreppet entreprenörskapspolicy, där syftet med stödet är att underlätta för företag/projekt att koppla upp sig mot relevanta innovationssystem där de kan säkra sin tillgång på externa resurser. Med utgångspunkt i ett sårbarhetsperspektiv visar avhandlingen att offentligt finansierade program som stödjer entreprenörskap kan motiveras genom att de små och nystartade företagens resurser är begränsade och eftersom riskerna ofta gör att intresset från privata aktörer att gå in i dessa företag är lågt. Avhandlingens praktiska implikationer är bland annat att det stöd som riktas till de allra tidigaste utvecklingsfaserna i syfte att kvalificera idéer bör vara brett. Däremot kan ett mer selektivt urval vara fördelaktigt i något senare utvecklingsskeden och för mer specialiserade stöd. Vidare visar de inkluderade studierna på behovet av att se till hela företagets utvecklingsprocess. Det innebär bland annat att det är nödvändigt att kombinera hårt och mjukt stöd och att lika vikt läggs vid produkt- och marknadsutveckling. Offentligt stöd bör också vara långsiktigt, och samarbete mellan olika stödprogram är viktigt, inte minst med avseende på information om vilka stöd som finns och hur, var, när och av vem dessa kan sökas. Slutligen understryks vikten av att stödprogram redan från början bör ta hänsyn till utvärderingsaspekter.

<p>This thesis is about publicly funded support of technology-based ventures. These ventures are regarded as solutions to create growth and societal development. They are commonly originated from universities, institutes or other firms and their products or techniques are commonly new or at least different from the ordinary. They are therefore considered as being of higher risk than generic new firms, but if successful they may also give higher returns. Hence, a range of efforts has been undertaken to support them. However, concerning the issue of public support, gaps of research have been exposed.</p><p>This thesis aims to give some answers on the question of what characterizes the public support given to technology-based ventures in Sweden. It elucidates two types of public support, the “configuration-type” and the “process-type” The first is studied by using statistical databases built upon the conditional loans and the innovation subsidies that were offered by Sweden Innovation Centre during the years 1994-2003. The second type concerns incubator support, and investigates how best practise incubators can be evaluated. Among the results, it can be mentioned that different support actors use different selection criteria depending on their goals, however the credibility of the applying venture is crucial for approval. Furthermore, a framework for best practice evaluation is developed.</p> / Report code: LiU-Tek-Lic 2005:72. Pages 49-68 and 87-105 has been removed since the author do not have the copyright for articles one and three when published in a scientific journal.

This thesis is about publicly funded support of technology-based ventures. These ventures are regarded as solutions to create growth and societal development. They are commonly originated from universities, institutes or other firms and their products or techniques are commonly new or at least different from the ordinary. They are therefore considered as being of higher risk than generic new firms, but if successful they may also give higher returns. Hence, a range of efforts has been undertaken to support them. However, concerning the issue of public support, gaps of research have been exposed. This thesis aims to give some answers on the question of what characterizes the public support given to technology-based ventures in Sweden. It elucidates two types of public support, the “configuration-type” and the “process-type” The first is studied by using statistical databases built upon the conditional loans and the innovation subsidies that were offered by Sweden Innovation Centre during the years 1994-2003. The second type concerns incubator support, and investigates how best practise incubators can be evaluated. Among the results, it can be mentioned that different support actors use different selection criteria depending on their goals, however the credibility of the applying venture is crucial for approval. Furthermore, a framework for best practice evaluation is developed. / <p>Report code: LiU-Tek-Lic 2005:72</p>