Case Detail

Case Summary

How Venture Capitalists Evaluate Potential Investment Opportunities

Case Number: 5-418-753, Year Published: 2018

HBS Number: KE1097

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Authors: Scott R. BakerPaola Sapienza; Siddharth Deekshit; Soumya Hundet

Key Concepts

Entrepreneurial Finance, Venture Capital

Abstract

This case consists of conversations with six prominent venture capital investors in the United States. The topics covered include investment strategies and relationships with entrepreneurs in the United States and around the world.

Learning Objectives

Explain the role that VCs play in funding and guiding entrepreneurial firms through different stages of growth and toward a successful exit; identify the benefits and drawbacks of syndication for a VC; compare and contrast approaches used by different VCs to evaluate potential investments and to manage existing investments; discuss qualitative and quantitative methods of evaluating VC investments; and understand how foreign markets for VC differ from those in the US.

Number of Pages: 32

Extended Case Information

Teaching Areas: Entrepreneurship

Teaching Note Available: Yes

Geographic: Global

Industry: Venture capital