Peculiarities of venture capital in financing the early stage business in Lithuania

Snieška, Vytautas; Venckuviene, Vitalija

doi:10.3846/bm.2010.029

Cited by 3 publications

(3 citation statements)

References 29 publications

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“…Source of debt financing covers commercial banks, commercial finance companies, leasing companies, state and local Government Lending Programs, trade credit and Consortiums. Meanwhile sources of equity capital cover: private investors, institutional venture capital firms, mergers and acquisitions, strategic investor and corporate venture capitalists and overseas investors (Snieška, Venckuvienė 2010).…”

Section: Previous Researchmentioning

confidence: 99%

“…Moreover, some different sources (Klein 2010;Mace et al 2010;Snieška, Venckuvienė 2010) suggest several funding options for the start-ups, all of them are explained more in detail in Table 1.…”

Section: Previous Researchmentioning

confidence: 99%

“…Talking about the case of Lithuania, here small and medium sized enterprises account for 99.4% of total active companies (Snieška, Venckuvienė 2010). However, Lithuanian business is pretty conservative and venture capital market is not necessary for applying of innovation.…”

Section: Previous Researchmentioning

confidence: 99%

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Valuation Model of New Start-Up Companies: Lithuanian Case

Stankevičienė

Žinytė

2011

Business: Theory and Practice

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Abstract.A large number of economic, financial, social, technological, ecological, environmental and other indicators define the effectiveness of the investment process. According to some of the indicators, the alternative new venture companies are suitable for putting them into investment, according to others, they are not. It becomes difficult to choose the optimal investment in the new venture, as all of them have very poor accounting data or still do not have any. Therefore, there is a lack of valuation methods, which could evaluate start-ups without having any accounting data. The purpose of this article is to propose an evaluation model which could help to choose the optimal new venture to fund. Multi-criteria methods, used in the evaluation process, enable to get objective answers about the effectiveness of the optimal new venture comprehensively by presenting some generalized indicators and considering both quantitative and qualitative data. The start-ups evaluating method proposed by the authors has both theoretical and practical advantages: the extensive analysis can be carried out; the different classification of the evaluation criteria is possible; the weights of the criteria are evaluated (importance, significance), and the possibility to include the new evaluation criteria and their employment in practice are considered. The obtained empirical results comparing two Lithuanian start-ups show that the proposed method could be used for evaluating complex processes of the optimal new venture investments, and could be adapted for various situations. Santrauka. Įvairūs ekonominiai, finansiniai, socialiniai, technologiniai, ekologiniai, aplinkos ir kiti veiksniai apibrėžia investicinio proceso veiksmingumą. Remiantis vienais rodikliais investicija į naujai kuriamą įmonę gali būti efektyvi, remiantis kitais -ne. Sudėtinga pasirinkti optimalią investiciją į naują įmonę, nes dažnai tokios įmonės turi mažai apskaitos duomenų arba jų visai neturi. Teorijoje ir praktikoje stokojama vertinimo metodų, kurie leistų įvertinti rizikingo kapitalo investicijas turint mažai finansinės informacijos. Šio straipsnio tikslas -pasiūlyti naujai kuriamų rizikingo kapitalo įmonių vertinimo modelį, kuris leistų investuotojui pasirinkti naujai kuriamą įmonę finansavimui. Daigiakriterinių metodų įtraukimas į vertinimo procesą leidžia objektyviai įvertinti naujai kuriamą įmonę, išsamiai išanalizuoti plataus spektro rodiklius -ir kiekybinius, ir kokybinius. Autorių siūlomas naujai kuriamų rizikingo kapitalo įmonių vertinimo modelis leidžia atlikti visapusišką ikiinvesticinę analizę, įtraukti skirtingas vertinimo kriterijų klasifikacijas; įvertinti kriterijų svorius, svarbą ir reikšmę; suteikia galimybę įtraukti naujus vertinimo kriterijus vertinimo proceso metu. Gauti empiriniai rezultatai, lyginant dvi Lietuvoje steigiamas įmones, rodo, kad siūlomas metodas gali būti taikomas kompleksiškai vertinant sudėtingą rizikos kapitalo investicinį procesą ir gali būti pritaikytas įvairiose situacijose. KeywordsReikšminiai žodžiai: nauja įmo...

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Section: Previous Researchmentioning

confidence: 99%

Section: Previous Researchmentioning

confidence: 99%

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Valuation Model of New Start-Up Companies: Lithuanian Case

Stankevičienė

Žinytė

2011

Business: Theory and Practice

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Hybrid Venture Capital Funds in Lithuania: Motives, Factors and Present State of Development

Snieška

Venckuviene

2011

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Government Sponsored Venture Capital Funds and Their Relation to Innovations in Lithuanian Smes

Venckuviene

Snieška

2014

ecoman

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The research shows that the government's role in activating the venture capital market occurs through direct and indirect public policy measures. The government plays an important role in choosing the most optimal public policy measures, focusing on timely economic issues, and in encouraging private investors to invest in industrial sectors where funding shortfall is the greatest. Studies have shown that the establishment of government sponsored venture capital funds (hereinafter GSVC funds) funds is justified by the following reasons: GSVC funds are an alternative source of capital funding for Small and Medium Sized Enterprises (hereinafter SMEs), they encourage innovation and are focused on job creation and economic growth. The present paper deals with the government's role in fostering the government-sponsored venture capital funds particularly focusing on the impact of such funds on innovations in SMEs in Lithuania. The research shows that it is appropriate to clarify the concept of GSVC funds, focusing on the role of supranational institutions in the establishment of these funds. Thus, GSVC funds in this paper refer to funds accumulated from private investors and public resources (government, as well as other supranational institutions such as the EU), which invest in high growth potential SMEs in their early growth and development stages in order to improve their development conditions in a particular region or country. The scientific literature research shows that the impact of venture capital on the innovations in SMEs is measured mainly in terms of patents (Chemmanur, Loutskina, & Tian, 2012; Brander et al., 2010; Bertoni & Tykvová, 2012). Thus, it reflects only onethe technologicalside of innovations. Meanwhile, considering innovations as multifaceted conception, the organizational innovations, networking, self-assessment and marketing innovations aspects should be taken into account as well. The type of the article: Research paper.

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Peculiarities of venture capital in financing the early stage business in Lithuania

Cited by 3 publications

References 29 publications

Valuation Model of New Start-Up Companies: Lithuanian Case

Valuation Model of New Start-Up Companies: Lithuanian Case

Hybrid Venture Capital Funds in Lithuania: Motives, Factors and Present State of Development

Government Sponsored Venture Capital Funds and Their Relation to Innovations in Lithuanian Smes

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