A Study on the Factors Affecting Investment Decision of Venture Capitalist

Abstract

This article examines the importance of venture capital to the financial industry and the world economy over the past 30 years. Venture capital is a powerful driver of the U.S. economy and the world economy. Further, this paper cites the research results of different authoritative authors from SSRN for a comprehensive discussion. The data source of this paper mainly uses the form of a questionnaire survey. This article mainly explores the standards and procedures used by eight venture capital firms when making investments. These criteria are generating deal sourcing, investment selection decision, tools and factors in the evaluation, contracting and structuring the investments, monitoring and post-investment value-added, VCs' exit, firm internal structure, and relationships. In the end, this paper refers to the importance of factors for venture capital firms to make decisions in different periods. Comparing different research results, it is shown that not only eight factors are the factors that determine venture capital firms' investment decisions, but also luck is part of the reference factor.