An Exploratory Study on determinants of Investment Behaviour of Venture Capitalist in Bangalore

An Exploratory Study on determinants of Investment Behaviour of Venture Capitalist in Bangalore

Mr. Sanjay L. A - Research Scholar, SJB College of Research Centre, University of Mysore

Dr. Dhakshayini K. N - Research Scholar, SJB College of Research Centre, University of Mysore

Abstract

This research has explored the nature of investment strategies by venture capitalists in Bangalore, mainly in terms of deal generation, geographic proximity, monitoring of deals, exit strategy, and evaluation of deals. It is basically to determine which are the prominent factors influencing their investment decisions along with their priorities. The adopted methodology for conducting this research work is exploratory, based on a sample population of 100 venture capitalists identified through convenience sampling. A structured questionnaire was used to collect data, and the responses were analysed on a five-point Likert scale. Multiple regression techniques were applied in SPSS to test the relationships among variables. The results indicate that deal evaluation and exit vehicles are the most important factors, whereas geographic proximity exerts the least influence, thus contesting conventional assumptions. Structured mechanisms of evaluation and robust exit strategies are the only means towards investment success. These findings have theoretical contributions to investment decision-making literature and practical implications toward venture capitalists, but a sample size and focus on a particular region bring about the need to carry out further research to make the generalizability better.

Keywords: Venture capitalist, Deal Generation, Multiple Regression, SPSS