n South African Journal of Economic and Management Sciences - Private equity and venture capital in South Africa : a comparison of project financing decisions
|Article Title||Private equity and venture capital in South Africa : a comparison of project financing decisions|
|© Publisher:||University of Pretoria|
|Journal||South African Journal of Economic and Management Sciences|
|Affiliations||1 University of Cape Town Graduate School of Business and 2 University of Cape Town Graduate School of Business|
|Publication Date||Jan 2013|
|Pages||258 - 278|
|Keyword(s)||G24, G34, Investment criteria, N27, Private equity, South Africa and Venture capital|
ISI Social Science
This paper investigates the manner in which private equity and venture capital firms in South Africa assess investment opportunities. The analysis was facilitated using a survey containing both Likert-scale and open-ended questions. The key findings show that both private equity and venture capital firms rate the entrepreneur or management team higher than any other criterion or consideration. Private equity firms, however, emphasise financial criteria more than venture capitalists do. There is also an observable shift in the investment activities away from start-up funding, towards later-stage deals. Risk appetite has also declined post the financial crisis.
Article metrics loading...