Analysis of the non-financial value creation mechanisms of venture capitalists for start-up companies

In their interactions with start-up companies, venture capitalists do more than just provide financial resources; they also create value for these companies. Using the case study method, the current study investigated six venture investments made between ۱۳۹۳ and ۱۴۰۰ through ۲۳ semi-structured interviews with people involved in venture capital and start-up companies. Furthermore, it has used axial coding and qualitative content analysis of interviews to look into the mechanisms that lead to the development of non-financial values. The findings of this study demonstrate that the creation of non-financial values by venture capitalists has two general orientations, external and internal. As a result, the ability and focus of the venture capitalist as well as the need acknowledged by start-up companies for the creation of non-financial value impact the overall strategy and efficacy of value-creation mechanisms. According to the findings, not all venture capitalists are capable of generating non-financial value in every field. As a result, these capitalists must consider the balanced, simultaneous development of non-financial value creation capabilities in their long-term approaches and select start-up companies that are consistent with their overall strategy. To avoid potential conflicts in interactions with this type of capitalist, start-up companies should take special care when selecting a venture capitalist and determining their expectations from their investment.

کلیدواژه ها:

Internal orientation ، External orientation ، Non-financial value creation mechanisms ، Venture Capital ، Start-up companies