IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-268-2_20.html

Venture Capitalist: The Factors of the Successful Investment

In: Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)

Author

Listed:
  • Wangshu Li

    (Wenzhou-Kean University, College of Business and Public Management)

  • Yifei Lu

    (The University of Manchester, School of Natural Sciences)

  • Yueying Wan

    (Dongbei University of Finance and Economics, Surrey International Institute)

Abstract

The venture capital industry has gradually received increasing attention in recent years. Making a successful investment is crucial for risk controllers. This paper mainly examines three factors that affect successful investment by reviewing papers in this field: founding team, valuation, and deal structure. In the factor of team formation, this article mentions five indicators that entrepreneurs and founding teams should consider when investing: learning ability, the execution of the founding team, personal traits of the entrepreneurs, network resources of the entrepreneurs, and integrity and complementarity. Venture capitalists with different experiences have different standards for project selection, and different economic environments can also have an impact on the selection of venture capital projects. By summarizing the relative valuation method and absolute valuation method, different valuation methods may lead to different conclusions. Therefore, in order to achieve a more accurate valuation, it is necessary to determine the needs and valuation methods of both investors. In the factor of deal structure, this paper reflects that trading structure is an important stage that connects the past and the future, and a successful trading structure can boost confidence and create advantages.

Suggested Citation

  • Wangshu Li & Yifei Lu & Yueying Wan, 2024. "Venture Capitalist: The Factors of the Successful Investment," Advances in Economics, Business and Management Research, in: Faruk Balli & Hui Nee Au Yong & Sikandar Ali Qalati & Ziqiang Zeng (ed.), Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023), pages 164-170, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-268-2_20
    DOI: 10.2991/978-94-6463-268-2_20
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-268-2_20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.