Management Assessment Methods in Venture Capital

Abstract

Venture capitalists employ a sometimes haphazard process for assessing senior managers of prospective new venture investments prior to making a final investment decision. There is a crying need for empirical research and practical theory to examine the assessment methods for human capital, and thereby assist the venture capital due diligence process. This article is the first to combine field research with theory from the fields of psychology and economics in an attempt to generate new theoretical and empirical insights.