Original Research

Private equity and venture capital in South Africa: A comparison of project financing decisions

David Portmann, Chipo Mlambo
South African Journal of Economic and Management Sciences | Vol 16, No 3 | a354 | DOI: https://doi.org/10.4102/sajems.v16i3.354 | © 2013 David Portmann, Chipo Mlambo | This work is licensed under CC Attribution 4.0
Submitted: 21 January 2012 | Published: 02 September 2013

About the author(s)

David Portmann,
Chipo Mlambo, UCT Graduate School of Business

Full Text:

PDF (555KB)

Share this article

Bookmark and Share

Abstract

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.


Keywords

No related keywords in the metadata.

Metrics

Total abstract views: 1015
Total article views: 1971

Reader Comments

Before posting a comment, read our privacy policy.

Post a comment (login required)

 

Crossref Citations

1. Investment considerations and impressions of integrated reporting
Pei-Chi Kelly Hsiao, Martin Kelly
Sustainability Accounting, Management and Policy Journal  vol: 9  issue: 1  first page: 2  year: 2018  
doi: 10.1108/SAMPJ-10-2016-0072