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Venture Capital Research: Past, Present and Future

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  • Vance H. Fried
  • Robert D. Hisrich

Abstract

The period since 1980 has seen the emergence of venture capital as an area of academic interest and research activity. This interest is merited given the importance of venture capital to economic development and new venture creation. This paper surveys venture capital research since 1981. Based upon that research, a descriptive model of the venture capital process is proposed. The model is then used to develop suggestions for future research topics. Suggestions for improving research methodology are also included.

Suggested Citation

  • Vance H. Fried & Robert D. Hisrich, 1988. "Venture Capital Research: Past, Present and Future," Entrepreneurship Theory and Practice, , vol. 13(1), pages 15-28, October.
    • Handle: RePEc:sae:entthe:v:13:y:1988:i:1:p:15-28
    DOI: 10.1177/104225878801300103
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    References listed on IDEAS

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    1. Bruno, Albert V. & Tyebjee, Tyzoon T., 1985. "The entrepreneur's search for capital," Journal of Business Venturing, Elsevier, vol. 1(1), pages 61-74.
    2. Macmillan, Ian C. & Siegel, Robin & Narasimha, P. N. Subba, 1985. "Criteria used by venture capitalists to evaluate new venture proposals," Journal of Business Venturing, Elsevier, vol. 1(1), pages 119-128.
    3. Timmons, Jeffry A. & Bygrave, William D., 1986. "Venture capital's role in financing innovation for economic growth," Journal of Business Venturing, Elsevier, vol. 1(2), pages 161-176.
    4. Macmillan, Ian C. & Zemann, Lauriann & Subbanarasimha, P. N., 1987. "Criteria distinguishing successful from unsuccessful ventures in the venture screening process," Journal of Business Venturing, Elsevier, vol. 2(2), pages 123-137.
    5. Chan, Yuk-Shee, 1983. "On the Positive Role of Financial Intermediation in Allocation of Venture Capital in a Market with Imperfect Information," Journal of Finance, American Finance Association, vol. 38(5), pages 1543-1568, December.
    6. Tyzoon T. Tyebjee & Albert V. Bruno, 1984. "A Model of Venture Capitalist Investment Activity," Management Science, INFORMS, vol. 30(9), pages 1051-1066, September.
    7. Stevenson, Howard H. & Muzyka, Daniel F. & Timmons, Jeffry A., 1987. "Venture capital in transition: A Monte-Carlo simulation of changes in investment patterns," Journal of Business Venturing, Elsevier, vol. 2(2), pages 103-121.
    8. Maier, John II & Walker, David A., 1987. "The role of venture capital in financing small business," Journal of Business Venturing, Elsevier, vol. 2(3), pages 207-214.
    9. Khan, Arshad M., 1987. "Assessing venture capital investments with noncompensatory behavioral decision models," Journal of Business Venturing, Elsevier, vol. 2(3), pages 193-205.
    10. Martin, John D. & Petty, J. William, 1983. "An Analysis of the Performance of Publicly Traded Venture Capital Companies," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 18(3), pages 401-410, September.
    11. Ruhnka, John C. & Young, John E., 1987. "A venture capital model of the development process for new ventures," Journal of Business Venturing, Elsevier, vol. 2(2), pages 167-184.
    12. Bygrave, William D., 1987. "Syndicated investments by venture capital firms: A networking perspective," Journal of Business Venturing, Elsevier, vol. 2(2), pages 139-154.
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    Cited by:

    1. Jens Burchardt & Ulrich Hommel & Dzidziso Samuel Kamuriwo & Carolina Billitteri, 2016. "Venture Capital Contracting in Theory and Practice: Implications for Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 40(1), pages 25-48, January.
    2. Petty, Jeffrey S. & Gruber, Marc, 2011. ""In pursuit of the real deal": A longitudinal study of VC decision making," Journal of Business Venturing, Elsevier, vol. 26(2), pages 172-188, March.
    3. Devi R. Gnyawali & Daniel S. Fogel, 1994. "Environments for Entrepreneurship Development: Key Dimensions and Research Implications," Entrepreneurship Theory and Practice, , vol. 18(4), pages 43-62, July.
    4. Dean A. Shepherd, 1999. "Venture Capitalists' Assessment of New Venture Survival," Management Science, INFORMS, vol. 45(5), pages 621-632, May.
    5. Elango, B. & Fried, Vance H. & Hisrich, Robert D. & Polonchek, Amy, 1995. "How venture capital firms differ," Journal of Business Venturing, Elsevier, vol. 10(2), pages 157-179, March.
    6. Ludányi, Arnold, 2001. "A tőkeerő és az alapítói háttér hatása a kockázatitőke-szervezetek befektetési magatartására - I [The effect of capital strength and founder background on the investment behaviour of risk-capital o," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 659-672.

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