Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry

Venture capital firms make capital investments in businesses in return for an equity stake. However finding businesses that deliver the kind of returns venture capital firms seek is not a straight forward task. This undertaking is made all the more difficult when investing in a start up business w...

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Main Author: Tucker, Steve
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2007
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20893/
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author Tucker, Steve
author_facet Tucker, Steve
author_sort Tucker, Steve
building Nottingham Research Data Repository
collection Online Access
description Venture capital firms make capital investments in businesses in return for an equity stake. However finding businesses that deliver the kind of returns venture capital firms seek is not a straight forward task. This undertaking is made all the more difficult when investing in a start up business which has no track record. Once the investment has been made there is no guarantee that the business will survive let alone provide the returns that are sought. This study investigates the investment process and rescuing of failing investments. In addition it looks to understand which of the two activities are more profitable to the venture capital firm. The study is based on primary data gathered through an in depth interview with a single venture capital firm. The surveyed firm specialises in early stage technology investments. The results show that the greatest return on time for the venture capital firm is investing in new businesses. However there is a caveat, the returns are only highest when the business turns out to be a star of the portfolio.
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spelling nottingham-208932018-05-23T15:37:07Z https://eprints.nottingham.ac.uk/20893/ Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry Tucker, Steve Venture capital firms make capital investments in businesses in return for an equity stake. However finding businesses that deliver the kind of returns venture capital firms seek is not a straight forward task. This undertaking is made all the more difficult when investing in a start up business which has no track record. Once the investment has been made there is no guarantee that the business will survive let alone provide the returns that are sought. This study investigates the investment process and rescuing of failing investments. In addition it looks to understand which of the two activities are more profitable to the venture capital firm. The study is based on primary data gathered through an in depth interview with a single venture capital firm. The surveyed firm specialises in early stage technology investments. The results show that the greatest return on time for the venture capital firm is investing in new businesses. However there is a caveat, the returns are only highest when the business turns out to be a star of the portfolio. 2007 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20893/1/07MBATucker.pdf Tucker, Steve (2007) Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry. [Dissertation (University of Nottingham only)] (Unpublished) Investment; venture capital; MBO; MBI;
spellingShingle Investment; venture capital; MBO; MBI;
Tucker, Steve
Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry
title Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry
title_full Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry
title_fullStr Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry
title_full_unstemmed Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry
title_short Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry
title_sort optimal decision making through return on time analysis for the venture capital industry
topic Investment; venture capital; MBO; MBI;
url https://eprints.nottingham.ac.uk/20893/