BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

The Factors of Venture Projects Selection in the Terms of Investors’ Decision-Making on Venture Financing
Mosiyevych O. O.

Mosiyevych, Olena O. (2019) “The Factors of Venture Projects Selection in the Terms of Investors’ Decision-Making on Venture Financing.” Business Inform 4:124–130.
https://doi.org/10.32983/2222-4459-2019-4-124-130

Section: Investment Processes

Article is written in Ukrainian
Downloads/views: 2

Download article (pdf) -

UDC 330.32

Abstract:
The article is aimed at researching the factors of selection of venture projects and ranking their importance in the decision-making by domestic investors on venture financing. A comprehensive study on investment decisions as to financing of venture projects was carried out, 31 investors were surveyed, including questions about the factors of selection. The survey respondents defined the factors influencing investment choices and then evaluated them according to their importance. The results of the research confirmed and underlined the supremacy of the project team in the minds of the domestic venture investors. In the selection of venture projects, investors consider a management team as a more important factor than business-related characteristics such as business model, product, technology. However, the value of the business model factor increases for investors in the later stages of financing. In addition, the results of the study indicate that in the later stages investors are more concerned about investment valuation than the ability to add value to the project.

Keywords: venture financing, decision-making on investment, evaluation of investments.

Fig.: 5. Tabl.: 1. Bibl.: 15.

Mosiyevych Olena O. – Applicant, Department of Finance, National University of Kyiv-Mohyla Academy (2 Skovorody Str., Kyiv, 04655, Ukraine)
Email: [email protected]

List of references in article

Baron, J. N., and Hannan, M. T. “Organizational blueprints for success in high-tech start-ups : Lessons from the Stanford project on emerging companies“. California Management Review, vol. 44, no. 3 (2002): 8-36.
Bernstein, S., Korteweg, A. G., and Laws, K. “Attracting Early Stage Investors: Evidence from a Randomized Feld Experiment“. The Journal of Finance, vol. LXXII, no. 2 (2017): 509-534.
Blair, E. S. Venture capitalist decision making and the priming of the subconscious risk construct in entrepreneurial business plan. University of Winconsin-Madison, 2008.
Bruton, G. D., and Ahlstrom, D. “An institutional view of China's venture capital industry: Explaining the differences between China and the West“. Journal of Business Venturing, vol. 18, no. 2 (2003): 233-259.
Bruton, G., Ahlstrom, D., and Yeh, K. S. “Understanding venture capital in East Asia: The impact of institutions on the industry today and tomorrow“. Journal of World Business, vol. 39, no. 1 (2004): 72-88.
Khanin, D. M. “Venture Capitalists' Investment and Reinvestment Decisions“: Unpublished doctoral dissertation, 2006.
Florin, J. “Is venture capital worth it? Effects on firm performance and founder's returns“. Journal of Business Venturing, vol. 20, no. 1 (2005): 113-135.
Gompers, P. et al. “Performance Persistence in Entrepreneurship“. Journal of Financial Economics, vol. 96, no. 1 (2010): 18-32.
Gompers, P. et al. “How Do Venture Capitalists Make Decisions?“ NBER Working Papers, no. 22587 (2016).
Hellmann, T., and Puri, M. “The interaction between product market and financing strategy: The role of venture capital“. Review of Financial Studies, vol. 13, no. 4 (2000): 959-984.
Jain, A. B. “Predictaor of venture capitalist-backed organizations“. Journal of Business Research, vol. 52, no. 3 (1999): 223-233.
Kaplan, S. N., Sensoy, B. A., and Stromberg, P. “Should investors bet on the jockey or the horse? Evidence from the evolution of firms from early business plans to public companies“. The Journal of Finance, vol. 64, no. 1 (2009): 75-115.
Kaplan, S. N., and Stromberg, P. E. “Characteristics, contracts, and actions: Evidence from venture capitalist analyses“. The Journal of Finance, vol. 59, no. 5 (2004): 2177-2210.
Schweinbacher, A. “A theoretical analysis of optimal financing strategies for different types of capital-constraint entrepreneurs“. Journal of Business Venturing, vol. 22, no. 6 (2007): 753-781.
Wang, C. W., Wang, K., and Lu, Q. “Effects of venture capitalist' participation in listed companies“. Journal of Banking & Finance, vol. 27, no. 10 (2003): 2015-2034.

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster