| Summary: | 碩士 === 國立臺灣科技大學 === 管理研究所 === 94 === In this study, the venture capital company studied, Company A, showed an investment strategy preference for investing in early stage start-ups as well as expansion cases. An analysis of Company A’s investment cases showed a higher proportion of foreign investments than domestic ones, an indication of the trend towards globalization in the venture capital industry.
One of the major purposes of this study is to identify the factors that influence investment decisions of venture capital firms, including investment stage preferences, and return rate comparisons between international and local investment projects. Early VCs in Taiwan preferred investing in mature technologies, due either to capacity limitations or the pursuit of quick returns. There are therefore limited studies on VCs focusing on early stage investments. It is hoped that through the study of the investment data of Company A, a VC with a special focus on high tech start-up investments, some major factors that affect investment decisions could be uncovered.
The study findings showed that the Board of Company A assessed investment cases using four criteria: the entrepreneur and the management team; the industry and the market; the product and technology; and the financial plan and return rates. No prior studies discussing the factors or priorities that affect decision-making of VC investments were found. This study shows evidence with real data indicating that when the companies under evaluation had more leading technologies and patents, or products with a unique market niche, their investment proposals were more likely to be approved. On the contrary, if the companies seeking investments had no promising technologies or the market demand for their products was narrow, the proposals were more likely to be turned down.
The analysis of key factors that contribute to successful investment cases shows that industry and market promise, as well as the leading technology played vital roles. On the other hand, investment failures may be due to problems of the entrepreneurs or management team, or to fierce competition and changes in the industry or market. It is thus concluded that start-ups with a better chance to succeed are those with leading technologies or products in emerging or promising industries or markets. However, factors such as the management team and the overall industrial environment also determine the final results to a large degree.
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