2007 Fiscal Year Final Research Report Summary
A Researchon Criterion of Investment Evaluation for Venture Business and Venture Capital
| Project/Area Number |
18530299
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | Toyo University |
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Principal Investigator |
OGURA Yasuhiro Toyo University, BUSINESS ADMINISTRATION, PROFESSOR (40058144)
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| Co-Investigator(Kenkyū-buntansha) |
DONG Jinfhui TOYO UNIVERSITY, BUSINESS ADMINISTRATION, 講師 (80408955)
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| Project Period (FY) |
2006 – 2007
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| Keywords | CORPORATE FINANCE / VENTURE / VENTURE CAPITAL / CRITERIA OF INVESTMENT EVALUATION / CREATING FIRM VALUE |
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| Research Abstract |
This research demonstrates criteria of investment evaluation for venture capital, which invest to venture businesses to creating venture firm's value. We carried out an empirical survey using questionnaires, by asking the financial officers of venture capital firms in Japan. In this survey, we focused on 4 territories, main results are the following. (i) On the criteria of audit for investing to ventures, we find that venture capitals take account of "business plans" as most important term. This result is different form previous survey, that venture capitals take account of "manager's endowments" as most important one, this means a new current that venture capitals recognize the substance of business is most important has appeared. (ii) On the valuation methods, we find that venture capitals use new valuation methods aggressively, such as "venture capital methods", "discounted free cash flow", "EBITDA multiple", "real option". (iii) On the exit strategy, venture capitals are willing to use "going public". (iv) On the management participation, venture capitals dispatch necessary managers in required timing.
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