Investment Strategies of Venture Capital Funds

Bachelor Thesis from the year 2019 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Technical University of Munich (Chair of Entrepreneurial Finance), language: English, abstract: This thesis will review the research conducted on the investment strategies pursued by VC funds and the dimensions among which these are formulated. Specifically, this thesis seeks to answer the following research questions: Which portfolio strategies do venture capitalists pursue in practice? How can these be explained from a theoretical point of view? What factors influence the choice of investment strategy? What are the implications of the investment strategies for VC fund performance? The thesis is structured as follows. The first section provides a general overview of VC. The next section briefly describes the method and framework of the review. The results of the review are presented in the following section, including a definition of investment strategies and a description of the dimensions along which they are formulated. This is followed by an analysis of the methodology of the reviewed studies. The section continues with a summary of relevant theories, an examination of the relationship between investment strategy and performance and concludes with a synthesis of the findings. The last section links the empirical findings with the theory reviewed in the previous section and discusses implications for practice. Finally, some limitations of this thesis and avenues for further research are identified.