Deriving successful venture capital deal profile through decision tree analysis in Indian context
Purpose: This study is based on the development of predictive classification for the success of a venture capital (VC) deal derived from both qualitative and quantitative indicators. Design/methodology/approach: Decision tree analysis has used for devising the success model of VC deal. Various deal characteristics are considered in this study as the observable component of success. Findings: The finding of this analysis indicates that the success of the deal does not only depend on the final outcome like post company valuation (POST_COMP), realised revenue (RREV) but also depends on various observable contractual characteristics like syndication, use of convertible security and ownership percentage with some noticeable deal features. Practical implications: This study increases the further scope of study on a contractual mechanisms such as allocation of cash flow right and control right in the deal contract between venture investor and entrepreneur firm. This could give a better understanding of success path of a venture deal. Originality/value: This study has attempted to derive a performance model based on observable attributes of a VC deal.
Year of publication: |
2020
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Authors: | Mishra, Sarita ; Bag, Dinabandhu |
Published in: |
World Journal of Entrepreneurship, Management and Sustainable Development. - Emerald, ISSN 2042-5961, ZDB-ID 2664517-8. - Vol. 16.2020, 2 (10.04.), p. 97-108
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Publisher: |
Emerald |
Saved in:
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