Role of Venture Capitals in New Business Formation

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ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The importance of venture capital to the incubation and early-stage growth of new enterprise (new firms) has been well documented. Studies exploring the determinants of new-firm formation have tested for hypothesized linkages involving contextual (socio-economic) factors on a variety of spatial scales. To date, however, little or no published research is focused on the role of venture-capital investment flows on new-firm formation at the regional level. This study seeks to address this gap in our understanding. In order to isolate the effects of venture capital on new-firm formation, while controlling for categories of covariates whose influences may be confounded. The methodology of the research is qualitative and based on secondary data. Chapter 4 analyses the data, which were collected through different literature from journal and article. Finally the researcher concludes the research along with the finding on the role of venture capitals in the formation of new businesses.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 3: METHODOLOGY1

Introduction1

Research Method1

Secondary Data2

Literature Search3

Qualitative Research3

Keywords4

Data Analysis4

Reliability and Validity4

Ethical Concerns4

Limitations of Research5

CHAPTER 4: CRITICAL ANALYSIS AND DISCUSSION6

Introduction6

Discussion6

Influence of Venture Capital in New Frim Formation10

Critical Analysis12

Venture Capital in Europe14

The Functions Of The Venture Capital16

Experience and Learning for Venture Capitals17

Impacts of Venture Capital on New Business Formation19

Factors Influencing the Venture Capital Investment Decision21

Expectations of Venture Capital Investors24

Venture Capital and New Business Formation26

Factors Of Venture Capitals in New Business Formation28

Investment and Funding In New Business29

Extent of Venture Capital Investment Opportunities31

CHAPTER 5: CONCLUSION35

Scope for Further Research37

REFERENCES38

APPENDIX44

LIST OF TABLES

Table 1: New Firm Formation10

Table 2 : Distribution25

Table 3 :Venture Capital Investment30

Table 4 : Countries And Their Portfolio34

Table 5: Uk Early Stage Development44

Table 6: Data Collection Sources45

LIST OF FIGURE

Figure 1 : Trend In Venture Capital Investment In Europe15

Figure 2 : New Firm Formation27

Figure 3: Annual Private Equity And Venture Capital Investments In UK 2001-200844

CHAPTER 3: METHODOLOGY

Introduction

This chapter gives us an overview of the methodology, which describes how the research has been carried out. Methodology refers to how a research should be undertaken (Creswell 2003 45). In order to conduct a successful research, it is essential to collect relevant data from various sources and analyze it

The research study tends to focus on determining the role of venture capitals in the formation of new businesses. I have opted for the qualitative analysis as the methodology of the research study. The research includes the articles, publications and studies that are easily accessible on the internet. The research has been started by providing the existing literature which helped explain the topic in a broader context. The literature was searched in an extensive manner in order to obtain information ...