Venture Capital and Entrepreneurship: The Cost and Resolution of Investment Readiness

38 Pages Posted: 8 Apr 2019

See all articles by Danai Zana

Danai Zana

affiliation not provided to SSRN

Brian Barnard

University of the Witwatersrand - Wits Business School

Date Written: March 15, 2019

Abstract

The study examines investment readiness (IR) within venture capital (VC) markets, and the cost and resolution thereof. IR impacts VC markets, and the efficiency thereof, in a number of ways. Factors and issues that are raised and considered as part of IR, include: entrepreneurs’ experience and business acumen; the quality of opportunities; the perspective of VC’s; the perspective of entrepreneurs; the quality of IR content and services; IR assistance; moderation and accreditation; and awareness. In general, IR solutions need to consider cost; quality; coverage or pervasiveness; awareness; and assistance. The matter of IR assistance to improve IR, requires an in depth cost-benefit analysis. IR assistance raises the issue of the seriousness of entrepreneurs. Method and technique available to improve IR at no negative impact, typically implies running additional pipelines on the side. There is definitely room and a place for technology, also IR metrics as technology, to assist with IR. IR metrics can be further integrated with technology and professional assistance, to offer a comprehensive IR tool and solution. This may also the beginning of turning IR into a competitive advantage. IR metrics should be considered and regarded against their accompanying and corresponding accuracy and success rates, also when considering subsequent and successive IR assessment. IR metrics or IR metric systems can further by secured through moderation. The industry can consider working towards an industry-accepted IR standard. Cost estimates to improve IR equally reveals whether the system is not over-extended, requiring rather a focus on quality.

Keywords: venture capital, entrepreneurship, investment readiness, investment readiness assessment, accreditation, moderation, assistance, quality, awareness, technology

Suggested Citation

Zana, Danai and Barnard, Brian, Venture Capital and Entrepreneurship: The Cost and Resolution of Investment Readiness (March 15, 2019). Available at SSRN: https://ssrn.com/abstract=3353078 or http://dx.doi.org/10.2139/ssrn.3353078

Danai Zana

affiliation not provided to SSRN

Brian Barnard (Contact Author)

University of the Witwatersrand - Wits Business School ( email )

Johannesburg
South Africa

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