The case study is about an interview, conducted to four venture capitalists from four of the most prominent VC Silicon Valley firms, Kleiner Perkins Caufield & Byers (KPCB), Menlo Ventures, Trinity Ventures and Alta Partners. These firms invest both in seed as well as in later-stage companies, which operate mostly in the information technology sector. However, each VC has developed different sector portfolio depending on the expertise of the venture capitalists, the partner network and other factors. Professor Mike Roberts and Lauren Barley a senior research associate, both from Harvard Business School, have made a series of seven questions to their interviewees to understand how they evaluate potential venture opportunities and what they look at in order to decide if they will fund them and in which way. The questions were dealing with how VC’s evaluate potential venture opportunities, how they conduct due diligence, what process id followed for the decision making, what financial analyses is performed, the role of risk in the evaluation and how they think of potential exit routes. These questions were asked individually and revealed several similarities as well as differences in the strategy and the criteria that are used for the evaluation.
In particular, startups conform to a set of formalized, ritualistic practices in order to obtain venture capital (VC) funding during the “seed” phase. Almost paradoxically, new companies are regarded as a kernel of innovation and invention in the economy and yet they seem to emulate each others’ routines in the pursuit of early investment, decoupled from the actual products or services they plan to sell to the
Although small businesses do not make a lot of major deals with large investors, most small businesses create profit revenue greater than large corporations. Small business creators are very brave considering only ten percent of small businesses survive. Unfortunately, some communities do not support local small businesses; they only support the large brand name and force small businesses to die out. Since small businesses will not have a name brand known around the world, many people from communities will not support them because they are not known on a national scale. “This, in turn will affect the local economy and drive capital out of their local economy. On average, for every one hundred dollars spent in an economy, if spent on a
A small business can be defined as a legal entity consisting of very few employees. Establishing a business such as a proprietorship is the least complicated among business structures. Proprietorships also have a major advantage over other business structures with regards to filing taxes. Profits generated by the business are taxed at individual tax rates thus avoiding the double taxation incurred by corporations. Local economies, government offices, schools and the unemployed benefit greatly from the growth stimulated by these companies. The taxes collected from small businesses and job creation makes small business a vital part of the community.
An entrepreneur is a person who is gifted at identifying the unsatisfied needs of a market, at mobilizing and organizing the resources required to satisfy those needs and at defining a long-term strategy of development and marketing. As the enterprise grows, two processes combine to denude the entrepreneur of some of his initial functions. The firm has ever growing needs for capital : financial, human, assets and so on. Additionally, the company begins (or should begin) to interface and interact with older, better established firms.
The reasons for JumpStart’s switch in investment is that scaleups can immediately create new jobs as they have already built a working infrastructure. By offering services to these scaleups, JumpStart hopes to create jobs at a faster rate while still investing in startups, which will generate new jobs in the distant future. One advancement of this program is that JumpStart will not only focus on the medical, tech or clean energy area, it will branch out to any other small businesses are that promising. “It could be a bakery,” quoted Ray Leach, JumpStart CEO, “It could be a high-tech manufacturer. It could be (a business that) was a startup company eight years ago” (Soder, 2017). This novel approach is good news for existing companies that have hit a plateau in
Founders are at the core of new ventures. Previous research has examined the role of the entrepreneur (Cooper and Dunkelberg, 1986; Sandberg and Hoffer, 1987) but there are gaps in the literature that do not address the modern shifts in the environment. The characteristics that influence an entrepreneur have also been studied widely (Roberts, 1989; Vivarelli, 2004; Hessels, Gelderon, and Thurik, 2008). But as environments change, more questions emerge about the entrepreneur and his or her new venture. One of these questions is the role of entrepreneurial experience of new ventures, a concept that has been studied before in a variety of ways (Dyke, Fischer, and Reuber, 1992; Stuart and Abetti, 1990; Haynes, 2003). Therefore, the way we study entrepreneurship needs to be updated to represent the changes in the environment. With the environmental shift to Internet based ventures, the question arises if previous research that examined the role of experience of the entrepreneur is out of date or applicable to this new type of venture. Put simply, although entrepreneurship has been widely studied, little research has focused on entrepreneurs of new, online ventures. Therefore it will be the purpose of this paper to analyze the relationship between the experience of the entrepreneur and new Internet based ventures.
In the late 80s, the Singaporean government started concentrating more of its efforts on improving the country’s research and development capabilities and providing a favorable environment for entrepreneurship in hopes of increasing Singapore’s number of technology-based startups, which can lead to the development of a thriving technology industry in Singapore and contribute to significant economic growth. The government started many initiatives and created favorable policies that led to the creation of cutting-edge technology—especially in biotechnology and water technologies—and Singapore’s consistent top international rankings in business environment for start-ups . However, despite these advances, Singapore ranked ninth-lowest in early-stage entrepreneurial activity out of 42 countries included in the 2006 Global Entrepreneurship Monitor report, and the country continued to experience low rates of technology-based entrep...