Differences in Venture Capital Financing of U.S., UK, German and French Information Technology Start-Ups - A Comparative Empirical Research of the Investment Process on the Venture Capital Firm Level

2010 ◽  
Author(s):  
Michael Jurgen Garbade
Author(s):  
Manish Kumar Maurya

Nowadays, Organizations especially the start-ups concentrate so much in adding values to the product and services that it hardly adds value to their own employees. Mass layoffs and shutting down businesses are few examples of that.This paper attempts to increase an understanding of a different approach towards entrepreneurship. It basically takes into account the roles venture capital financing play in supporting entrepreneurial activity and an alternative to it by introducing the concept of grafting entrepreneurship and its implications.


2017 ◽  
Vol 7 (1) ◽  
pp. 75-81
Author(s):  
Simon Zaby

This paper aims to investigate success factors of innovative start-up firms from the perspective of young start-up managers. Which key factors did they experience before and since the foundation of their company? The experience from the quite young Swiss start-up scene pro-vides important insights to entrepreneurs and policy-makers in emerging countries that cur-rently face the necessity of building up a start-up environment. One part of the data has been collected by the author, the other part originates from the Swiss Venture Capital Database (total sample size: 306). The results show a significant role of venture capital financing for the success of innovative start-ups. Interestingly, this is to some extent because the start-ups see various additional benefits from venture capitalists involved in their firm. Thus, the findings shed new light on a proper definition of venture capital that should not solely focus on the flow of funds.


2016 ◽  
Vol 9 (1) ◽  
pp. 16-32
Author(s):  
Judit Edit Futó

Abstract Over the past decade the venture capital industry has become more and more prominent, not just on a global level, but in Hungary, too. Thanks to the JEREMIE Program a large number of new venture capital firms are located in our country, and therefore an investment wave has started. The aim of the paper is to sort micro- and small sized enterprises in terms of how appropriate is a venture capital financing. The main topic of the paper relates to the selection of firms for venture capital investment; therefore, in the first part of the study we briefly summarize a general venture capital investment process, highlighting both the selection process and the criteria used for selection. Then we propose 3 indexes (trustworthiness index, openness index, investment index), which we have created to help venture capitalists to decide whether the targeted enterprises are appropriate for them, or not. In the main part of the paper we provide a classification of micro- and small sized Hungarian firms based on my own survey, and we analyze what kind of relationship exists between the proposed indexes and the type of the classified firms. The result of the classification is that we identify four main firm types and, based on statistical tests, it can be said that there is no significant relationship between the trustworthiness index and the clusters, but that there are between the two other indexes and the clusters.


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