Venture capital funding in periods of economic uncertainty: a multi-facet analysis of success factors of early-stage German ventures - perspective on structural, and transactional factors

Abstract

Uncertain economic conditions increasingly pressurize venture capital performance and require a revised approach to funding decisions. This study develops a comprehensive model for investment target assessment tailored to a changed risk profile and low liquidity. Incorporating business model, company, financial, structural, and transactional factors as well as evolving industry standards, analyses based on the study’s findings provide potential for successful deployment of capital despite unfavorable circumstances. By building upon qualitative insights of experienced industry professionals from a variety of German investment firms supplemented by a substantial foundation from preceding literature, this research strengthens existing research with a differentiated perspective.