Venture Capital Financing of U.S., UK, German and French IT Start-ups

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

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.

• 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

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.

Frequently Asked Questions

What is the main focus of this research on venture capital?

The research analyzes the differences in venture capital financing of IT start-ups across the U.S., UK, Germany, and France, focusing on the entire investment cycle from contact to exit.

Which stages of the venture capital investment cycle are covered?

The book covers the contact phase, initial screening, due diligence, deal structuring and negotiation, the management phase (value-adding services), and the exit phase.

How does the book define the difference between e-business and e-commerce?

The book provides theoretical definitions and contrasts the two terms within the framework of business administration theory and market transaction categories.

What are the key investment criteria evaluated during due diligence?

Key criteria include the evaluation of the management team, the business model (product or service), market analysis, and potential exit channels.

Which financial valuation methods for start-ups are discussed?

The research discusses Pre-Money and Post-Money valuation, Multiples (Comparable Companies/Transactions), and the Discounted Cash Flow (DCF) method.

What is the role of Independent Venture Capital (IVC) firms?

IVC firms provide equity financing and play a crucial role in mitigating agency risks (asymmetric information, moral hazard) through staged financing and active monitoring.