Venture capitalists' assessment of new venture survival

This study investigates whether VCs' assessment policies of new venture sur vival are consistent with those arising from the strategy literature (using two established strategy perspectives). Strategy scholars suggest the natu re of the markets, competition, and decisions made by the management team a ffect a new venture's survival chances. The findings demonstrate that VCs' assessment policies are predominantly consistent with those proposed by str ategy scholars-providing insight into why VCs consider certain criteria in their assessment of new venture survival as well as why some criteria are m ore important in their assessment than others. Through this increased under standing of venture capitalists' decision making, entrepreneurs seeking cap ital may be better able to address their requests for funding to those crit eria venture capitalists find most critical to the survival of a new ventur e. venture capitalists may use these findings to better understand their ow n decision making process, which, in turn, provides the opportunity to incr ease evaluation efficiency.