In December, 2016 Steve Kaplan (Chicago Booth), Will Gornall (UBC Sauder), Paul Gompers (Harvard), Ilya Strebulaev (Stanford) published a paper called “How Do Venture Capitalists Make Decisions?”. They surveyed 885 institutional VCs at 681 firms to learn how they make decisions across eight areas:

  1. Deal sourcing
  2. Investment selection
  3. Deal structure
  4. Post-investment value-added
  5. Exits
  6. Internal firm organization
  7. Relationships with limited partners

The analysis covers many types of startups in different phases of growth as well as VCs with different investment focuses and stages of startup investment. Early-stage startups can learn much from this paper on what they can do to become successfully funded startups that end up either doing an IPO or being acquired.

VCSurveyGGKS 20161231