Analyzing and investigating the factors affecting the cooperation pattern of venture capitalists and startup companies with a focus on non-financial value creation mechanisms.

Document Type : Research Article (Original Article)

Authors

1 PhD candidate of Technology Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Associate Professor, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran

3 Assistant Professor, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran

Abstract

In their interaction with startup companies, venture capitalists play a role beyond providing financial resources for these companies and create value for them. The present research, using the case study method, investigates six venture investments made in the period (1393 to 1400) through 23 semi-structured interviews with experts active in venture capital and startup companies and the factors affecting the mechanisms of creating non-financial values in venture investors has been investigated using qualitative content analysis of interviews and axial coding. The results of this research show that in both venture capitalists, the five factors of clear expression of expectations, trust and respect, timely fulfillment of obligations, high flexibility and non-interference in executive affairs by venture capitalists have played an effective role in the value creation of these investors for startup companies and laid the groundwork. The success and effective interaction between these two venture capitalists has been in the period of cooperation. On the other hand, there is a fundamental difference between the two factors of the effective presence of the board of directors representative and the culture of planning and control between these two venture capitalists, which is due to the difference in the control and governance approaches of them in the interaction with startup companies.

Keywords

Journal of Improvement Management

Articles in Press, Accepted Manuscript
Available Online from 25 February 2023

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History

  • Receive Date: 18 September 2022
  • Revise Date: 20 February 2023
  • Accept Date: 25 February 2023
  • First Publish Date: 25 February 2023

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