IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Uncovering Knowledge Structures of Venture Capital Investment Decision Making

  • Pankaj Patel
  • Rodney D’Souza
Registered author(s):

    Studies on venture capital (VC) investment decision using espoused criteria and utility aggregation methods have shown mixed results. Using a latent decision structures approach from psychological scaling literature, we reduce random and systematic biases arising from VC decision environment. In addition, we further address such biases using a combination of parametric and nonparametric techniques and practitioner specified decision criteria on 143 funded and nonfunded business plans. Compared to previous studies that have emphasized the central role of the venture team in obtaining funding, we find that (a) a good venture team is critical for not rejecting a business plan but is less critical for funding a business plan (b) a good venture team has decreasing returns even for funded ventures, but favorable competitive conditions and market potential have increasing returns.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sba.gov/advo/research/rs315tot.pdf
    Our checks indicate that this address may not be valid because: 500 Can't connect to archive.sba.gov:80 (Bad hostname) (http://www.sba.gov/advo/research/rs315tot.pdf [301 Moved Permanently]--> http://archive.sba.gov/advo/research/rs315tot.pdf). If this is indeed the case, please notify (Victoria Williams)

    or (Rob Kleinsteuber)


    Download Restriction: no

    Paper provided by U.S. Small Business Administration, Office of Advocacy in its series The Office of Advocacy Small Business Working Papers with number 08pprd.

    as
    in new window

    Length: 32 pages
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:sba:wpaper:08pprd
    Contact details of provider: Postal: 409 Third Street, SW, Washington DC 20416
    Phone: 1-800-827-5722
    Web page: http://www.sba.gov/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:sba:wpaper:08pprd. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Victoria Williams)

    or (Rob Kleinsteuber)

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.