Determinants of early-stage technology venture valuation by business angels and venture capitalists

Start-up selection criteria for corporate venturing: what matters for incumbents

“…1 Team criteria include criteria related to the entrepreneur(s) experience and personality such as commitment and professionalism. In line with Wessendorf et al (2019), our findings confirm that education and expertise and here, particularly the technical qualification (Kollmann and Kuckertz, 2010) of the team members are decisive for the selection decision.…”

“…Due to a short company history, unfinished products, immature market offerings, or missing financial indicators, the evaluation of start-ups is associated with high risks and uncertainties. Clear criteria for the evaluation and selection help to minimise these risks and to make rational and informed selection decisions (Wessendorf et al, 2019).…”

“…In a systematic literature review on selection criteria applied by institutional venture capitalists and business angels, Wessendorf et al (2019) name criteria categories related to the start-up's characteristics, the entrepreneur(s) and the team as well as to intellectual property and alliances. Here, the start-up's characteristics refer to criteria such as the start-up's age, structure, and presentation as well as to product characteristics and market characteristics.…”

“…Criteria concerning the entrepreneur(s) and the team include the education and expertise of the team members and what industry, management, and start-up experience they have. For intellectual property and alliances, criteria such as patents and applications as well as investor reputation are relevant (Wessendorf et al, 2019).…”

“…As one of the first steps of the venturing process (Gompers et al, 2020), the initial screening and selection allow to mitigate risks and counter asymmetric information (Weigand, 2019). Thereby, start-ups can be evaluated based on criteria related to the company itself, the entrepreneur(s) and the team, or intellectual property and alliances (Wessendorf et al, 2019). However, these are criteria categories for the general evaluation of start-ups.…”