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The Investment Evaluation Standards and Process of Venture Capital Industry in Taiwan: Taking T Venture Capital Company as an Example

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  • Tzung-Hsien Lee
  • Chien-Liang Chen
  • Sung-Lin Wang

Abstract

The venture capital industry is characterized by high risk and high reward, demanding sharp market insight and strong assessment capabilities. This article examines the evaluation criteria used by T Venture Capital Company in selecting investment targets, offering a reference for the industry. The study utilizes a case study method, focusing on an experienced venture capital firm identified through the Taiwan Venture Capital Association's 2022 roster. Key findings from interviews and document analysis highlight five main criteria used by T Company: 1. Adjusting evaluation based on the investment stage and industry specifics. 2. Focusing on the entrepreneurial team’s background, skills, passion, and vision. 3. Prioritizing technological innovation and business model sustainability. 4. Ensuring a clear exit strategy with ongoing communication. 5. Conducting thorough due diligence for sound investment decisions. The study reveals that T Company relies on a mix of data, judgment, and flexibility in its decision-making process, adapting to each unique situation. Â

Suggested Citation

  • Tzung-Hsien Lee & Chien-Liang Chen & Sung-Lin Wang, 2024. "The Investment Evaluation Standards and Process of Venture Capital Industry in Taiwan: Taking T Venture Capital Company as an Example," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 14(5), pages 1-3.
    • Handle: RePEc:spt:apfiba:v:14:y:2024:i:5:f:14_5_3
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    References listed on IDEAS

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    1. Tyzoon T. Tyebjee & Albert V. Bruno, 1984. "A Model of Venture Capitalist Investment Activity," Management Science, INFORMS, vol. 30(9), pages 1051-1066, September.
    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.
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