FINANCING EARLY STAGE
TECHNOLOGY BASED COMPANIES:
INVESTMENT CRITERIA USED BY INVESTORS
Jagdeep S. Bachher, University of Waterloo
Paul D. Guild, University of Waterloo
This study sought to advance understanding of the decision making criteria currently used by Canadian equity investors to evaluate early stage technology based companies. Three types of equity investors participated: business angels (BAs, n=20), private venture capitalists (PVCs, n=20) and public venture capital funds (PVCFs, n=20). A total of 95 criteria were derived from previous investment literature and these subsequently received a priori assignment to one of five categories: (1) characteristics of the entrepreneur(s), (2) characteristics of the market, (3) characteristics of the venture offering, (4) investor(s) requirements and (5) characteristics of the investment proposal.
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Last Updated 1/15/97 by Geoff Goldman & Dennis Valencia
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