A Study of Optimal Venture Capital Types and Disinvestment Decision Models

• Main Authors: Yu Ting Huang, 黃毓婷
• Other Authors: Tyrone T. Lin
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/32484524317535614508

碩士 === 銘傳大學 === 管理科學研究所 === 91 === This thesis assesses at an optimal venture capital investment decision-making model about start-up enterprises that how to choice from different venture capital types under expected utility consideration. Most investing cases of venture capital companies are faced with high risk industries which result venture capital companies are weaker of information asymmetry, hence, how many risks to meet is their priority consideration. By some assumptions in practice, start-up enterprises desire to finance venture funds from three types of venture capital companies: one is purely independent VC financing; the other is purely strategic VC financing; and another is mixed financing. Under the risk-averse basis, the optimal VC investment model is built by expected utility function result from the VC companies to project and also conducted numerical analysis and sensitive analysis on the basis of the relative variables. The proposed model could provide start-up enterprises for making the optimal strategic decisions-making. This thesis is also exploring the optimal disinvestment decision-making model. In the venture capital contract, venture capital is entitled to two exit ways: when the project value is lower than then the venture capital company exercises the redemption option and the project value is higher than then the venture capital company executes the convertibility rights. If the project value is located in the zone of , the optimal decision is holding and waiting the rights of liquidation and convertibility to exercise in the future. The disinvestment apply real options approach to the exit strategies of the projects, and analyze and compare the optimal exit timing of redemption and convertibility to build the optimal disinvestment evaluation model in VC companies.