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Venture Capitalists' Evaluations of Start-Up Teams: Trade-Offs, Knock-Out Criteria, and the Impact of VC Experience

Franke, Nikolaus and Gruber, Marc and Harhoff, Dietmar and Henkel, Joachim (2008) Venture Capitalists' Evaluations of Start-Up Teams: Trade-Offs, Knock-Out Criteria, and the Impact of VC Experience. Entrepreneurship Theory and Practice, 32 (3). pp. 459-483. ISSN 1042-2587

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Abstract

The start-up team plays a key role in venture capitalists' evaluations of venture proposals. Our findings go beyond existing research, first by providing a detailed exploration of VCs' team evaluation criteria, and second by investigating the moderator variable of VC experience. Our results reveal utility trade-offs between team characteristics and thus provide answers to questions such as "What strength does it take to compensate for a weakness in characteristic A?" Moreover, our analysis reveals that novice VCs tend to focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion. Data were obtained in a conjoint experiment with 51 professionals in VC firms and analyzed using discrete choice econometric models. (authors' abstract)

Item Type: Article
Additional Information: Published with Wiley OnlineOpen option.
Divisions: Departments > Strategy and Innovation > Entrepreneurship und Innovation > Franke
Version of the Document: Published
Variance from Published Version: None
Depositing User: Elena Simukovic
Date Deposited: 15 Dec 2015 14:55
Last Modified: 27 Dec 2015 17:51
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/33022/
URI: http://epub.wu.ac.at/id/eprint/4705

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