Entrepreneurial success factor : a systematic approach to entrepreneur evaluation

Abstract

As the necessary technology and methodologies become much more accessible every day, barriers to entry to become an entrepreneur keep decreasing. However total investment funds raised by venture capital firms every year stays at the same level, and therefore it is now more critical to use this money wisely and invest in entrepreneurs that are bound to success. This thesis tries to shed light on the entrepreneur evaluation process that can sometimes be equally important to market due diligence. In this research, correlation between entrepreneur characteristics and the level of success of the firms that they founded are explored in detail. Moreover, this research also looks from another point of view by providing interviews with the venture capitalists in the Boston area. From the initial stages, main aim was to conclude this research with practical advises. As a result, a scorecard and an Excel sheet are provided for investors that can be used to determine and track potential entrepreneurs` characteristics. In the end, this thesis also hopes to add a new level of information to the existent literature on the correlation of entrepreneurial characteristics with the success of the startup.