
MBA dissertation
written on the UK
Venture Capital Industry (2006)
20,000
words – 100 pages in length
Excellent use of literature
Outstanding piece of work
The
1990’s were boom years for the Venture Capital (VC)
industry as a sizeable number of business proposals were accepted by VC
firms (VCF’s). A very large amount of proposals financed by
VCF’s went on to become successful initial public offerings
(IPO’s) which benefited both the VCF and the investee.
However, these experiences ended in 2000 when the “Dot.com
bubble” as it had become known (so called due to the number
Internet companies financed by VCF’s), burst. As a result of
this, many VCF’s became very conservative and the industry
went into decline. The lack of confidence in IPO’s made their
exit strategy limited (Mason, Harrison 2004). As VCF’s like
to realize their investment as soon as possible, the exit strategy (how
they realize their returns) for their investment is crucial.
Through this dissertation the research question being asked is:
“Have traditional formal multi-stage investment
decision-making methods for VCF’s in the UK become outdated,
being replaced by new methods more appropriate to the
industry?” A good research question is one that has not been
examined in previous research, therefore indicating the value of
conducting the research. As the researcher is unaware of any research
covering this topic in recent years, it suggests that the findings of
this study would be beneficial to the VC industry, and may assist
future research. It should be mentioned that the fact of multi-stage
models usage is not in question, merely the manner in which they are
used.
As the research question and research objectives should be related, the
objectives of the research complement the research question. For this
dissertation the research objectives are as follows:
1. To illustrate the investment decision-making methods evident with UK
VCF’s.
2. To examine the variety of investment decision-making methods evident
with UK VCF’s.
3. To establish the manner in which UK VCF’s establish Deal
Origination in terms of receiving proposals and evaluating them.
4. To examine the importance given by UK VCF’s towards
different factors in the investment decision making process.
Chapter
One
Introduction
Research Problem
Research Question
Research Objectives
Dissertation Structure
Chapter
Two
Literature Review
Introduction to VC Industry
Typical Characteristics of a VC Firm
Venture Funding
Venture Capital Investment Decision Making
Agency Costs-The Pitfalls of a Venture Capital Firm
Moral Hazard
Information Asymmetry
Traditional Methods of Venture Capital Investment Decision Making
Formal Multi-Stage Investment Decision Making
Berger and Udell Model
Tyebjee and Bruno Model
Fried and Hisrich Study
Traditional Behaviour of VCF’s in Deal Origination
Traditional VCF Operations-General
Alternative Theories of Venture Capital Investment Decision Making
New Research on VCF’s Investment Decision Making
Deal Origination-New Methods
Post-2000 VC industry Practice
Evidence of UK Venture Capital Investment Decision Making
UK Venture Capital Firms-A Profile in behaviour
UK VCF Espoused Behaviour
UK VCF Behaviour In Use
The Dragon’s Den
Make Me A Million
Conclusions
Literature Gap
Chapter
Three
Research Strategy and Methodology
Introduction
Research Problem and Research Question
Research Approach
Hypothesis
Research Strategy
Research Design
Research Methods
Data Collection, Editing & Coding
Qualitative v Quantitative Approach
Quantitative Research as appropriate to this Dissertation
Questionnaire
Questionnaire-Pilot Testing
Questionnaire-Final Version
Methods of Sampling Applied
Sampling-Purpose/Objectives
Sampling Technique
Sample Size
Chapter
Four
Research Findings/ Analysis of Data
Introduction
Quantitative Data Analysis
General Respondent Data
Investment Decision-Making Process
Investment Policy
Typical Venture Capital Firm
Deal Origination
Investment Factors
Research Limitations
Chapter
Five
Discussion/Recommendations
Introduction
Core Recommendations
Chapter
Six
Conclusion/Testing of Hypothesis
Introduction
Research Objectives
Objective 1: To illustrate the investment decision-making methods
evident with UK VCF’s
Objective 2: To examine the variety of investment decision-making
methods evident with UK VCF’s
Objective 3: To establish the manner in which UK VCF’s
establish Deal Origination in terms of receiving proposals and
evaluating them
Objective 4: To examine the importance given by UK VCF’s
towards different factors in the investment decision making process
Hypothesis-Described
Hypothesis-Conclusion
Future Research
Chapter
Seven
Reflections of Learning & Skills Development
Reflections on learning
Skills Developed
Communication
Take Part in Discussions
Produce Written Materials
Use Images
Read and Respond to Written Materials
Working with Others
Identify Collective Goals
Work to Collective Goals
Improving Own Learning and Performance
Identifying Targets and Action Required
Follow Plan to Meet Targets
Summary of Learning
Bibliography
Appendices
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