PE Is Abandoning Early-Stage Vc

¶ … PE Is Abandoning Early-Stage Vc - an Analysis of the UK and Europe

This study has three specific objectives: (1) investigation of reasons that 3i and Apax determined to abandon venture capital (early-stage investments); (2) review of the venture capital (early-stage investments) industry's performance in the UK and Europe (industry data analysis) to understand the context for these decisions; and (3) understand the implications and decisions made by 3i and Apax in their proposal for venture capital. The hypotheses of this study are: (1) When recipients of venture capital repeatedly fail to produce anticipated profits, then private equity companies move away from early-stage venture capital and determine to discontinue early-stage investment; and (2) When private equity companies move away from early-stage venture capital and determine to discontinue early-stage investment, then recipients of venture capital that repeatedly fail to produce anticipated profits face additional funding challenges. This study involves an attempt to understand why 3i and Apax decided to leave venture capital combined with categorization and analysis of the reported reasons. The next step in this research involves the evaluation of the venture capital industry's investment performance in the UK and in Europe. The third phase of this study will entail conclusions being drawn for the future of venture capital from a review of literature along with five interviews of individuals who are currently employed in positions relating to financial management and/or VC.