Title: Linking prefunding venture structure and venture capital exit performance

Authors: Jan-Georg Streletzki

Addresses: Department of Entrepreneurship and Start-up Management, Leuphana University of Lueneburg, Scharnhorststrasse 1, D-21335 Lueneburg, Germany

Abstract: This study investigates the state of the art on venture capital (VC) success prediction and compares it to the findings on general start up performance, and new technology-based venture (NTBV) performance in particular. It is still generally believed that the factors responsible for general venture performance also drive VC performance. This study argues that there is a need for differentiation: VCs and founders pursue different goals, and VC funded ventures grow under different conditions than their non-funded counterparts. Results of a structured literature review show, while team-related predictors have a comparatively lower impact, market related predictors have a higher impact on exit performance than on NTBV performance. Also, VC-specific predictors like timing and distance are shown to have an influence on exit performance.

Keywords: venture capital; exit performance; success predictors; success factors; prefunding; team; assets; industry; location; timing; startups; new technology-based firms; NTBF performance; entrepreneurship; entrepreneurial funding.

DOI: 10.1504/IJEV.2013.058166

International Journal of Entrepreneurial Venturing, 2013 Vol.5 No.4, pp.345 - 368

Published online: 30 Jan 2014 *

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