Relevance of Human Capital in the Process of Finding Venture Capital Investors

Term Paper , 2015 , 19 Pages , Grade: 1,3

Business economics - Investment and Finance

This term paper examines the relevance of human capital (HC) in the process of finding venture capital investors.

Since knowledge and skills became a driver for a company's competitive advantage, the relevance of HC grew according to corporate success. Remaining competitive in the innovative and rapidly growing market environment gives innovations and, thus, HC knowledge and skills an important role within a company's value creation process. Therefore, HC and qualified employees are becoming a key factor when aiming at corporate growth and searching for capital investors.

To analyse this subject, the term paper aims to screen the process of finding venture capital investors and to ascertain the role of HC in it. This will be done by first defining HC as well as venture capital and afterwards describing how these two subjects relate to each other by describing the position of HC within a business plan and taking a companies departments as orientation. Afterwards it's going to be explained how HC can be represented in key figures by applying the Saarbrücker Formel. As a practical example, the formula will be applied to the BASF Coatings AG. Finally, the results will be explained and the findings summarized and critically examined.

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 1.1 Statement of Problem
• 1.2 Objectives and Method of Investigation
• 2. Definitions
• 2.1 Human Capital
• 2.2 Venture Capital
• 3. Presentation of HC to Venture Capital Investors
• 3.1 HC importance for Venture Capital Investors
• 3.1.1 Management Levels
• 3.1.2 Research and Development
• 3.1.3 Marketing
• 3.1.4 Finance Department
• 3.2 Measuring Human Capital with the "Saarbrücker Formel"
• 3.3. Practical Application of the Saarbrücker Formel by Using the Example of the BASF Coatings AG
• 4. Results and Discussion
• 5. Conclusion and Recommendations

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This term paper aims to explore the significance of human capital (HC) in attracting venture capital investors. It analyzes the role of HC in a company's value creation process, particularly within a rapidly changing and innovative market environment. The paper examines how HC, as a key factor, contributes to corporate growth and attracts capital investors.

• The relevance of human capital in the context of venture capital investments
• The role of human capital in a company's value creation process and competitive advantage
• The importance of human capital in attracting venture capital investors
• Methods of measuring and quantifying human capital
• Practical application of human capital measurement through the "Saarbrücker Formel" example.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction: This chapter introduces the topic of the term paper, highlighting the increasing relevance of human capital (HC) in driving a company's competitive advantage. It establishes the problem statement and outlines the objectives and methodology of the research.
• Chapter 2: Definitions: This chapter provides definitions of key terms, including human capital (HC) and venture capital. It clarifies the concept of HC and its importance in the context of business growth.
• Chapter 3: Presentation of HC to Venture Capital Investors: This chapter explores the significance of HC for venture capital investors, analyzing its impact across various departments within a company, such as management, research and development, marketing, and finance. It also discusses the "Saarbrücker Formel" as a method for measuring HC and provides a practical example of its application in the BASF Coatings AG.
• Chapter 4: Results and Discussion: This chapter presents the results of the research and critically examines the findings. It analyzes the relationship between HC and the success of attracting venture capital investors.

Schlüsselwörter (Keywords)

The primary keywords and focus topics of this term paper include human capital, venture capital, value creation, competitive advantage, corporate growth, innovation, market environment, Saarbrücker Formel, and measurement methods for quantifying human capital.

• College: University of Applied Sciences Essen
• Grade: 1,3
• Author: Oxana Lauer (Author)
• Publication Year: 2015
• Pages: 19
• Catalog Number: V309783
• ISBN (eBook): 9783668085688
• ISBN (Book): 9783668085695
• Language: English
• Tags: Saarbrücker Formel, Venture Capital, Human Capital, Humankapital bewerten, BASF Coatings, Kennzahlen Humankapital, value creation