Entrepreneurship in science and technologyHow venture capitalists evaluate potential venture capital opportunities1. Summary of the case and issues raised The case study concerns an interview conducted with four venture capitalists from four of Silicon Valley's most prominent venture capital firms, Kleiner Perkins Caufield & Byers (KPCB), Menlo Ventures, Trinity Ventures and Alta Partners . These companies invest in both seed and later-stage companies, which operate primarily in the information technology sector. However, each VC has developed a different sector portfolio depending on the skills of the venture capitalists, the partner network and other factors. Professor Mike Roberts and Senior Research Associate Lauren Barley, both from Harvard Business School, asked their interviewees a series of seven questions to understand how they evaluate potential venture capital opportunities and what they look at to decide whether to fund them and how. The questions covered how VCs evaluate potential venture capital opportunities, how they conduct due diligence, what process is followed for decision making, what financial analyzes are performed, the role of risk in the evaluation, and how they think about potential avenues. of exit. These questions were asked individually and revealed numerous similarities and differences in the strategy and criteria used for evaluation.1. Case analysis. Before reading the case, list your set of criteria for evaluating a new venture as an opportunity. There are a number of criteria relevant to a financing decision for a new business. To build my list for evaluating a new company as an opportunity I chose to refer to...... half of the document ......considering the market characteristics unimportant. Hoel, unlike others, says that a good location is also an important factor for success as it helps in hiring good professionals.d. To what extent do you think the proposed course project/business idea should meet these criteria? I think our course project should address a strong pain point in the market that customers will be very interested in. The technology and business model must create barriers to copying by others. The team and the people we know (our network) are certainly crucial to the success of the project, especially at this moment; it is our fundamental means to the success of our objectives. The market should have good size and significant growth prospects, but since our idea concerns high technology and social media, this is probably a criterion for which we are sufficient.
tags