| Article ID: | iaor200332 |
| Country: | United States |
| Volume: | 31 |
| Issue: | 5 |
| Start Page Number: | 43 |
| End Page Number: | 61 |
| Publication Date: | Sep 2001 |
| Journal: | Interfaces |
| Authors: | Schefczyk Michael |
| Keywords: | finance & banking, investment |
Based on literature reviews, I formulated 10 hypotheses for a wide range of determinants of success for German venture capital firms (VCFs). I tested and largely confirmed these hypotheses using bivariate correlation analyses and confirmatory multivariate LISREL models on a data set of 103 transactions by 12 German VCFs. The analyses indicate that emphasizing portfolio companies' managaers' qualifications, intensifying co-operation between VCFs and portfolio companies, and ensuring a strong (minority) shareholder position of the VCFs coincide with above average success.