Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)

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Venture Capitalist: The Factors of the Successful Investment

Authors
Wangshu Li1, Yifei Lu2, *, Yueying Wan3
1College of Business and Public Management, Wenzhou-Kean University, Wenzhou, China
2School of Natural Sciences, The University of Manchester, Manchester, United Kingdom
3Surrey International Institute, Dongbei University of Finance and Economics, Dalian, China
*Corresponding author. Email: yifei.lu-4@student.manchester.ac.uk
Corresponding Author
Yifei Lu
Available Online 10 October 2023.
DOI
10.2991/978-94-6463-268-2_20How to use a DOI?
Keywords
Founding Team; Valuation; Deal Structure
Abstract

The venture capital industry has gradually received increasing attention in recent years. Making a successful investment is crucial for risk controllers. This paper mainly examines three factors that affect successful investment by reviewing papers in this field: founding team, valuation, and deal structure. In the factor of team formation, this article mentions five indicators that entrepreneurs and founding teams should consider when investing: learning ability, the execution of the founding team, personal traits of the entrepreneurs, network resources of the entrepreneurs, and integrity and complementarity. Venture capitalists with different experiences have different standards for project selection, and different economic environments can also have an impact on the selection of venture capital projects. By summarizing the relative valuation method and absolute valuation method, different valuation methods may lead to different conclusions. Therefore, in order to achieve a more accurate valuation, it is necessary to determine the needs and valuation methods of both investors. In the factor of deal structure, this paper reflects that trading structure is an important stage that connects the past and the future, and a successful trading structure can boost confidence and create advantages.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
10 October 2023
ISBN
10.2991/978-94-6463-268-2_20
ISSN
2352-5428
DOI
10.2991/978-94-6463-268-2_20How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Wangshu Li
AU  - Yifei Lu
AU  - Yueying Wan
PY  - 2023
DA  - 2023/10/10
TI  - Venture Capitalist: The Factors of the Successful Investment
BT  - Proceedings of the 2023 2nd International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2023)
PB  - Atlantis Press
SP  - 164
EP  - 170
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-268-2_20
DO  - 10.2991/978-94-6463-268-2_20
ID  - Li2023
ER  -