How Early Stage Entrepreneurs Select Venture Capitalists
D. Gordon Smith,
How Early Stage Entrepreneurs Select Venture Capitalists,
J. PRIVATE EQUITY,
Available at: https://digitalcommons.law.byu.edu/faculty_scholarship/28
This paper is the first attempt to study the process and criteria used by entrepreneurs in evaluating venture capitalists. Selection process involves issues such as the time invested in gathering information, the sources of information, and the number of venture capitalists considered. Selection criteria are split into four groups: (1) Valuation; (2) Value-Added Services; (3) Reputational Factors; and (4) Venture Capitalist Attributes. The paper presents results for all respondents and compares results when the respondents are sorted by geographic region, industry, experience, and age. The paper also examines satisfaction, sorting respondents by geographic region, industry, experience, age, time devoted to the search, and criteria ranking.
(Pre-publication version) Also in 1999 FRONTIERS OF ENTREPRENEURSHIP RESEARCH, for the 1999 Babson College/ Kauffman Foundation Entrepreneurship Research Conference, University of South Carolina, Columbia, South Carolina on May 12-15, 1999.
Journal of Private Equity