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Evaluation of entrepreneurial teams: early-stage investment decisions in new technology-based firms

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  • Kirsti Dautzenberg
  • Guido Reger

Abstract

In new technology-based firms (NTBFs), entrepreneurial teams rather than single entrepreneurs seem to be better-suited to handle uncertainties and volatilities. Recent works suggest that the skills, abilities and interactive dynamics of the entrepreneurial team seem to be highly important in explaining new venture performance. Therefore, entrepreneurial teams play a key role in venture capitalist evaluations. We developed a process model for the venture capitalists' evaluations of entrepreneurial teams during the investment decision process for early-stage financing in NTBFs. The present model combines attributes of entrepreneurial team composition and trust-based relationships between the entrepreneurial team and the investor. Finally, we discuss the implications and limitations of our proposed model.

Suggested Citation

  • Kirsti Dautzenberg & Guido Reger, 2010. "Evaluation of entrepreneurial teams: early-stage investment decisions in new technology-based firms," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 2(1), pages 1-22.
  • Handle: RePEc:ids:ijeven:v:2:y:2010:i:1:p:1-22
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