Analysis of mechanisms for creating non-financial values of venture capitalists for start-up companies

Document Type : Research Paper

Authors

1 PhD Candidate of Technology Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Associate Professor, Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran.

3 Assistant Professor, Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

Abstract

Venture capitalists have a role to play in providing their startups with more than just funding and creating value for their start-ups. The present research, using the case study method, investigates the cooperation pattern of venture capitalists and startups companies through the analysis of 6 risky investments made in the period (1393-1400) through 23 semi-structured interviews with venture capitalists and start-ups, examines the mechanisms of non-financial value creation using qualitative interview content analysis and centralized coding.

The results of this study show that the creation of non-financial values of venture capitalists has two general external and internal orientations. The results also indicate that not all venture capitalists are necessarily able to create non-financial value in all areas, and it is necessary for such investors to consider the simultaneous and balanced development of non-financial value-creating capabilities in their long-term approaches and select start-ups.

Start-up companies should also pay attention to the selection of venture capitalists and determine their expectations from this investment to prevent possible conflicts in interaction with this type of investors.

Keywords

Main Subjects

References

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Strategic Studies of public policy
Volume 13, Issue 46
May 2023
Pages 2-37

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