Metaphors used by venture capitalists: Darwinism, architecture and myth

Cannice, Mark V.; Bell, Arthur H.

doi:10.1080/13691060903184787

Cited by 9 publications

(11 citation statements)

References 32 publications

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“…As with the image of a tree implied in the notion of root metaphor, these metaphors branch off from the primary conceptual framework of drama. In their study of venture capitalists, Cannice and Bell (2010, p. 4) explained that their aim was ‘to locate the dominant families of figurative language by which industry leaders – venture capitalists, in our case – attempt to craft communications full of implication, suggestion, qualification and persuasive appeal’. In our study, we seek to do likewise by exploring the shaping power of root metaphors as employed by the bankers in the construction of explanations for the crisis, their role within it, and the criticisms which they had attracted.…”

Section: The Importance Of Metaphor In Organizational Discoursementioning

confidence: 99%

Metaphors of Failure and the Failures of Metaphor: A Critical Study of Root Metaphors used by Bankers in Explaining the Banking Crisis

Tourish

Hargie

2012

Organization Studies

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This paper analyses the testimony of four banking CEOs to the Banking Crisis Inquiry of the Treasury Committee of the UK House of Commons in 2009. We explore the root metaphors they employed as they sought to explain the banking failures that had occurred. Our analysis identifies four such metaphors. First, 'the wisdom of the crowd', in that bankers were influenced by the behaviour of significant others. Second, the bankers depict themselves as at times being forced to be passive observers of events. Third, they characterize themselves as victims of the crisis, sharing in the widespread pain it produced. Fourth, they are penitent learners, able and willing to improve. The main intent seems to be to frame public discussion of the crisis in terms which diminishes their responsibility for what happened. We also argue that the bankers' discourse had limited impact in terms of framing public debate, while the metaphors they employed have the potential to minimize learning from failure. The study of the metaphors of failure that they employed is therefore also the study of the failure of metaphor as an explanatory trope and an aid to organizational learning. In addition, we suggest that the impact of metaphors can be reconsidered in terms of what we term 'the exclusion principle'. This suggests that, while they achieve some of their effects by a process of comparison between adjacent domains, and a consideration of differences between them, they also can exclude categories of meaning from consideration. Our paper therefore contributes to the literature on metaphor, as well as those considering organizational failure and associated attempts to draw lessons from the banking crisis.

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Section: The Importance Of Metaphor In Organizational Discoursementioning

confidence: 99%

Metaphors of Failure and the Failures of Metaphor: A Critical Study of Root Metaphors used by Bankers in Explaining the Banking Crisis

Tourish

Hargie

2012

Organization Studies

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“…REP and other (granular computing) tools to integrate qualitative and quantitative information making use of intervals, which for Tarrazo (2008) can be taken as the bridge between words and numbers and the language of strategy. (The qualitative side of this bridge may include work such as Cannice and Bell (2010) which examined the use of metaphors by venture capitalists. From a systematic collection and classification of venture capitalists" utterances of metaphor which acted as unconscious "tells", the study authors constructed a typology of VC decision maker typesranging from a Darwinist whose frame of reference is that "only the strongest will survive" to the Priest -who looks for "meaning in new ventures".…”

Section: Relational Equationsmentioning

confidence: 99%

Portfolio Heuristics, Linearity, and Qualitative Analysis

Tarrazo¹

2016

AEF

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Linearity can be used to introduce qualitative analysis in portfolio optimization using very specific heuristics which in some cases carries enough information to anticipate the entire (qualitative) rank of solutions. This result is shown in the first part of our study. In the second part we show that correct analysis of optimal portfolios, and in particular those minimizing portfolio variance, requires complementary quantitative analysis with qualitative analysis as not all efficient portfolios have the same return-to-risk quality, and those minimizing variance may not minimize risk. In this section, we also introduce some notes of caution on the application of heuristics when applied to portfolios calculated in non-standard ways. The third and last section extends the literature by critically reviewing different ways in which qualitative heuristics can complement portfolio selection methods while also reviewing existing, full-fledged qualitative portfolio optimization methodologies.

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“…At least since 2003, the academic literature claims that the valuation of new ventures and startup companies is an area of research that is under-developed (Chatsios, Foroglou, & Moutafidis, 2016;Davila et al, 2003;Köhn, 2018;Miloud, Aspelund, & Cabrol, 2012 This thesis reviews the literature on new ventures and startups with a particular interest in how they fund their operations and how investors select companies to invest. It proposes a method of classification of new ventures and startups and a systematic approach to investment decisions, including its selection and valuation.…”

Section: List Of Figuresmentioning

confidence: 99%

“…Valuation is a determining factor for both founders and investors. As Miloud, Aspelund, & Cabrol (2012) put it: "research has shown that the valuation is important because it aligns the ambitions of the entrepreneur and investor, helps structure and assure a fair treatment (Clercq et al, 2006) and reduces the sources of potential conflict between the entrepreneur and the investor (Zacharakis, Erikson, and Bradley, 2010)." Kohn (2018) stated that "startup valuation in the VC context is often said to be more art than science."…”

Section: Valuation Considerationsmentioning

confidence: 99%

“…Valuation of new ventures and startup companies based on free cash flow projections is challenging because i) there is too much uncertainty regarding young companies' revenue growth and operating margins and ii) it is challenging to estimate reinvestment assumptions consistent with the young company's growth estimates (Damodaran, 2013). Commonly used valuation methods, including the discounted cash flow method, frustrates founders and investors of new ventures with massive variance of results (Miloud et al, 2012).…”

Section: Projected Cash Flowsmentioning

confidence: 99%

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