Effective Evaluation Criteria for Successful Ventures: A Study of Venture Capital in Hong Kong

Abstract

This article reports on a survey of venture capitalists to elicit information on effective criteria and vital factors attributable to the success and failure of firms financed by venture capital in Hong Kong, one of the largest venture capital centers in Asia. The survey data are analyzed through four statistical approaches to verify the significance of these factors and criteria. The findings are compared with those of prior studies on European, North American, and Asian countries. This article fills a gap in the literature by comparing the implications of vital factors and the effectiveness of evaluation criteria utilized by venture capitalists in successful and unsuccessful ventures.

TOPICS: Private equity, emerging, analysis of individual factors/risk premia, statistical methods