Hierarchy of venture capital investment variables: A study of venture capital providers in India

Access of capital from venture capital providers is a major challenge for young entrepreneurs. To get finance from them entrepreneurs prepare business plan in such way that can motivate venture capitalists to make investment in their firms. Therefore, they incorporate venture capital providers’ investment criteria in their business plan. No doubt, investment criteria are very important for entrepreneurs but it is also necessary to study which investment criteria is more important than others so that entrepreneurs can focus on important criteria and critically analyse them to make a better business plan. This study makes an attempt to find out preferred variables or factors related to investment criteria used by venture capital providers in India. The study found that venture capital providers consider business plan, management, finance, market, competition, product/service, customer and industry at first, second, third, fourth, fifth, sixth, seventh and eighth position respectively.