Independent Venture Capital (IVC) has been paramount in the emergence of the information technology industry in both the United States and Europe. There are relatively few large global information technology companies in Europe. A widening gap is observable in the success rate of IVC backed start-ups between the U.S. and Europe in the information technology industry. This difference could be attributable to the differences in the venture capital financing of start-ups in the U.S., UK, Germany and France. This book deals with "Differences in Venture Capital Financing of U.S., UK, German and French Information Technology Start-ups". The comparative analysis is conducted on a microeconomic level (managerial venture capital research), i.e. on the venture capital firm level.
The differences are analyzed for the whole venture capital investment cycle: contact phase, initial screening phase, due diligence phase, deal structuring and negotiation phase, management phase — value adding services, and exit phase. The research framework model examines the following differences in the venture capital investment cycle: average size of investment in the seed stage, average size of investment in the start-up stage, aver-age size of investment in the growth stage, percentage of start-ups in pre-revenue phase at time of investment, percentage of start-ups not managed by founders but experienced managers, percentage of investment in start-ups with me-too products, percentage of mar-ket analysis due diligence done informal, typical liquidation preference multiple, percent-age syndicated exits that are outperformers, number of tranches per investment round, number of board seats per partner and the cash multiple X that defines an outperformer. The empirical research work is based on an extensive scientific online questionnaire with VCs in the U.S., UK, Germany and France. Before the online questionnaire was drafted, a preliminary face-to-face expert interview was conducted with 24 VCs in Silicon Valley, London, Paris, Hamburg, Berlin and Munich. The primary data collected in the questionnaire served as basis for quantitative parametric and non-parametric statistical analysis.
The book is bespokenly written for decision makers in the venture capital industry in the U.S, UK, Germany and France; all entrepreneurs and professionals who want to under-stand the economics and mechanics of venture capital term sheet clauses; venture capital industry professionals; VC associations
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Topic
- Research Objectives
- Research Design
- Structure
- e-Business in Business Administration Theory
- Definitions, Characteristics and Concept of e-Business
- Definitions of the Term e-Business
- Contrasting e-Business and e-Commerce
- Applications in e-Business
- Market and Transaction Categories in e-Business
- Consumer as Value Generator: C2C, C2B, C2G
- Consumer-to-Consumer (C2C)
- Consumer-to-Business (C2B)
- Consumer-to-Government (C2G)
- Business as Value Generator: B2C, B2B, B2G
- Business-to-Consumer (B2C)
- Business-to-Business (B2B)
- Business-to-Government (B2G)
- Government as Value Generator: G2C, G2B, G2G
- e-Business Model
- e-Business and Entrepreneurship Theories
- Creative Destruction Theory
- Entrepreneurial Discovery and Competitive Market Process
- Venture Capital Financing of Start-ups in Business Administration Theory
- Equity Financing: Venture Capital Financing
- Institutional Venture Capital Financing
- Independent Venture Capital Financing (IVC)
- Definitions and Characteristics of Independent Venture Capital Financing
- Stages in the Financing Life Cycle of a Start-up
- Structure of Independent Venture Capital Firms
- Role of Independent Venture Capital Firms in Start-ups
- Theoretical Foundation for Explanation of the Behavior of Venture Capital Firms
- Agency Theory Model: Asymmetric Information, Moral Hazard and Adverse Selection
- Mitigation of Agency Risks
- Typical Venture Capital Investment Process: VC Investment Cycle
- Contact Phase
- Initial Screening Phase
- Due Diligence Phase
- Investment Criteria: Management Team, Market, Product, Potential Exit Channel
- Evaluation of Management Team
- Evaluation of Business Model: Product or Service
- Evaluation of Market: Market Analysis
- Evaluation of Potential Exit Channel
- Financial Due Diligence: Valuation of Start-ups
- Dilution
- Pre-Money and Post-Money Valuation
- Virtual Valuation
- Multiples: Comparable Companies and Comparable Transactions Method
- Discounted Cash Flow Method (DCF)
- Deal Structuring and Negotiation Phase
- Deal Negotiation
- Structuring a Venture Capital Deal
- Management Phase—Value Adding Services
- Exit Phase
- Venture Capital Investment Syndication
- Staged Financing of Start-ups
- Comparative analysis of venture capital financing practices in the U.S., UK, Germany, and France
- Examination of the investment process from the venture capital firm perspective
- Exploration of the factors influencing venture capital investment decisions across different countries
- Identification of key differences in the financing life cycle of start-ups across regions
- Analysis of the impact of cultural and institutional factors on venture capital financing
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This doctoral dissertation aims to investigate the differences in venture capital financing of information technology start-ups across the U.S., UK, Germany, and France. It focuses on understanding the investment process from the perspective of venture capital firms, comparing their practices and strategies in each country.
Zusammenfassung der Kapitel (Chapter Summaries)
The dissertation is structured to provide a comprehensive analysis of venture capital financing in different countries. Chapter 1 introduces the topic, research objectives, design, and structure of the dissertation. Chapter 2 explores the concept of e-business, defining terms, contrasting e-business with e-commerce, and examining various applications. Chapter 3 provides a detailed explanation of venture capital financing of start-ups, encompassing aspects like equity financing, independent venture capital financing, and the stages of the financing life cycle.
Schlüsselwörter (Keywords)
The dissertation focuses on the following key areas: Venture Capital Financing, Information Technology Start-ups, Comparative Analysis, Investment Process, e-Business, Financing Life Cycle, Cultural and Institutional Factors. It delves into concepts like equity financing, independent venture capital financing, and the role of venture capital firms in mitigating agency risks.
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- Michael Jurgen Garbade (Autor:in), 2011, Venture Capital Financing of U.S., UK, German and French IT Start-ups, München, GRIN Verlag, https://www.grin.com/document/170334
