Venture Capital Research—Investor Preferences and Success Factors for Startups

Abstract

Venture capital is an important source of funding for startups in the financial markets and is also critical to the success of startups. This paper aims to explore investor preferences in venture capital and the success factors of start-ups. First, I conducted a data distribution analysis of the investment situation of some investment companies around the world during the 70 years from 1950 to 2020. Secondly, I analyze the practical application of venture capital from the two aspects of start-up entrepreneurs and venture capital investors. It includes what kind of investors should be selected for startups, and the preferences of investors when choosing investment projects. Finally, I discuss the success requirements of startups and the help of venture capital for startups and use regression models to determine the relationship between startup success and venture capital activity.