Brazilian high-tech entrepreneurs' perceptions and attitudes towards venture capital

Abstract

This paper approaches entrepreneurship from a cultural perspective, analysing the entrepreneurs' cognitive world. A web-questionnaire captured the perceptions and attitudes towards venture capital held by Brazilian information technology and biotechnology entrepreneurs, which is further subdivided into incubated and non-incubated groups. The paper is organised in three parts. First, it explores the expectations held by entrepreneurs in seeking venture capital. Results show that the main reason for seeking venture capital is to 'establish partnership for strategic planning'. However, there are contrasting perceptions within the paired sample groups. Second, entrepreneurs' beliefs and feelings towards venture capital were examined. Data indicates that entrepreneurs generally hold overall favourable beliefs towards venture capital. Third, the analyses of the consequences of venture capital anticipated by entrepreneurs show that sample groups emphasise different positive impacts. Furthermore, reduction in managerial flexibility is the most significant worry expressed in entrepreneurs' assessment of venture capital outcome.