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Determinants of Success of German Venture Capital Investments

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  • Michael Schefczyk

    (SAP Chair of Entrepreneurship and Innovation Management, Technische Universität Dresden, D-01062, Dresden, Germany)

Abstract

Based on literature reviews, I formulated 10 hypotheses for a wide range of determinants of success for German venture capital firms (VCFs). I tested and largely confirmed these hypotheses using bivariate correlation analyses and confirmatory multivariate LISREL models on a data set of 103 transactions by 12 German VCFs. The analyses indicate that emphasizing portfolio companies' managers' qualifications, intensifying cooperation between VCFs and portfolio companies, and ensuring a strong (minority) shareholder position of the VCFs coincide with above average success.

Suggested Citation

  • Michael Schefczyk, 2001. "Determinants of Success of German Venture Capital Investments," Interfaces, INFORMS, vol. 31(5), pages 43-61, October.
    • Handle: RePEc:inm:orinte:v:31:y:2001:i:5:p:43-61
    DOI: 10.1287/inte.31.5.43.9656
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    References listed on IDEAS

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    Cited by:

    1. Bart Clarysse & Annelies Bobelyn & Itxaso Palacio Aguirre, 2013. "Learning from own and others’ previous experience: the contribution of the venture capital firm to the likelihood of a portfolio company’s trade sale," Small Business Economics, Springer, vol. 40(3), pages 575-590, April.

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