Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry

Tucker, Steve (2007) Optimal Decision Making Through Return On Time Analysis For The Venture Capital Industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Venture capital firms make capital investments in businesses in return for an equity stake. However finding businesses that deliver the kind of returns venture capital firms seek is not a straight forward task. This undertaking is made all the more difficult when investing in a start up business which has no track record.

Once the investment has been made there is no guarantee that the business will survive let alone provide the returns that are sought. This study investigates the investment process and rescuing of failing investments. In addition it looks to understand which of the two activities are more profitable to the venture capital firm.

The study is based on primary data gathered through an in depth interview with a single venture capital firm. The surveyed firm specialises in early stage technology investments.

The results show that the greatest return on time for the venture capital firm is investing in new businesses. However there is a caveat, the returns are only highest when the business turns out to be a star of the portfolio.

Item Type: Dissertation (University of Nottingham only)
Keywords: Investment; venture capital; MBO; MBI;
Depositing User: EP, Services
Date Deposited: 19 Jul 2007
Last Modified: 23 May 2018 15:37
URI: https://eprints.nottingham.ac.uk/id/eprint/20893

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