Frontiers of Entrepreneurship Research
1996 Edition


 

FINANCING EARLY STAGE TECHNOLOGY BASED COMPANIES:
INVESTMENT CRITERIA USED BY INVESTORS

 

Jagdeep S. Bachher, University of Waterloo

Paul D. Guild, University of Waterloo


Menu
Introduction
Literature Review
Method
Results
Discussion
Acknowledgements
References


ABSTRACT

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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1997 Babson College All Rights Reserved
Last Updated 1/15/97 by Geoff Goldman & Dennis Valencia

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