@article{Molnár_Jáki_2021, title={What qualities do government-owned venture capital investors seek in a new venture? A comparison of investment criteria across pre-seed, seed, and expansion stage startups}, volume={51}, url={https://journals.lib.uni-corvinus.hu/index.php/vezetestudomany/article/view/522}, DOI={10.14267/VEZTUD.2020.11.06}, abstractNote={<p>Private venture capital (VC) investors usually do not invest in early life-cycle stage startups such as seed and pre-seed companies, since investment size typically doesn’t reach investment thresholds. The entry of governments with fund managers to venture capital markets presents seed and pre-seed companies with the opportunity to receive funding. This paper examines the main investment preferences of Hungarian government-owned venture capital investors regarding pre-seed, seed, and expansion stage startups. Verbal protocol analysis enabled examination of the screening process in real-time in all three life-cycle stages. It is found that governmental VC funds mostly value financial indicators followed by market-related qualities while private VCs value these characteristics in alternate formation. However, in the pre-seed stage, the financial acumen and capabilities of management teams form the main criteria in similarity to angel investors. Governmental VCs also greatly seek innovational value in target firms.</p>}, number={11}, journal={Vezetéstudomány / Budapest Management Review}, author={Molnár, Endre Mihály and Jáki, Erika}, year={2021}, month={Jul.}, pages={64–76} }