Strategy-performance approach to venture capital finance process: introduction of a new strategy-performance innovation model for VCF-context

Aalto University, P.O. Box 11000, FI-00076 Aalto www.aalto. fi Author Karl N. Nikk Name of the publication Strategy-performance approach to Venture Capital Finance process: Introduction of a new strategy-performance innovation model for VCF context Publisher School of Economics Unit Department of Management and International Business Series Aalto University publication series BUSINESS + ECONOMY 2/2012 Field of research Finance, Venture capital, Capital Abstract The present [doctoral dissertation] focuses on venture capital finance of high technology firm. The venture capital finance represents one form of risk finance. The importance of risk finance for newly established companies is growing. It is evident that new high technology companies need external resources to support their development and growth. Venture capital finance is a negotiation process, where a firm seeks finance for its technology and business development. The venture capital industry is specialised to mobilise both economic and human resources for the needs of a firm. The venture capital finance will be realised, when both parts, a firm and a venture capital investor find common solution to mutual shareholder partnership. The present [dissertation] deals with the venture capital finance based on the strategyperformance approach. The [dissertation] combines strategic approach to venture capital finance process. The [dissertation] uses ASP-model, which is excellent tool to analyse this complex phenomena. The analyse raises the need to adopt the model into venture capital finance and the writer presents a new model to deal with the domain of VC finance. The first objective of the [dissertation] is to test ASP-model in the context of venture capital finance and to make proposals to develop the model. The second objective is to raise most relevant factor to a closer analyse as a part of the venture capital finance process. The management team is probably the most relevant factor on the way to successful performance of a high technology firm. The management team is the core element of the development process. The third target is to develop new model strategy-performance innovation model for venture capital finance context. This SPImodel is a relevant contribution to scientific and business community by offering the systematic analysis of innovation process of high technology firm in the venture capital finance domain. The structure of this [dissertation] consists of four chapters. The first chapter is general part, which integrates three essays. The first essay is dealing with theoretical strategy performance approach and the testing of ASP-model. The second essay focus on management team of a high technology firm. The third essay is focusing on new SPImodel in venture capital finance context. The findings and results of the present [dissertation] are based on case studies, literature, articles in journals and experiences of the writer from numerous negotiations between VC investors and SME companies. The [dissertation] introduces new strategy performance innovation model, which combines complex phenomena of venture capital finance process and strategic approach. The research takes part in discussion of venture capital finance and brings new elements to academic research and to business process applications in the research context.