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A Study on the Critical Factors Affecting Investment Decision on TIPS  

Goh, Byeong Ki (Department of Technology Entrepreneurship, Dongguk University)
Park, Sol Ip (Department of Technology Entrepreneurship, Dongguk University)
Kim, Da Hye (Department of Technology Entrepreneurship, Dongguk University)
Sung, Chang Soo (Department of Technology Entrepreneurship, Dongguk University)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.17, no.5, 2022 , pp. 31-47 More about this Journal
Abstract
The TIPS, a representative public-private cooperative project to revitalize the start-up ecosystem, is a government supported policy that promotes successful commercialization through various start-up support for technology-based startups. The purpose of this study is to analyze the investment decision factors of the TIPS program and to derive priorities. In order to achieve the research purpose, first, the investment decision factors were derived through literature analysis, a Delphi surveys were conducted on investors and experts participating in the evaluation of the TIPS program, and an AHP analysis was conducted on 20 VCs to empirically analyze the priority of factors on investment decisions. As a result of the analysis, the importance of critical factors was confirmed in the order of entrepreneurs(team) > market > product/service > finance > network. The importance of detailed factors was found in the order of entrepreneur's reliability and authenticity > market growth and scalability > team members' expertise and capabilities > adequacy of current market size > new market creation. This study presented the capabilities of technology-based startups preparing to participate in the TIPS program by deriving factors that influence investment decisions from an investor's perspective and comparing and analyzing the importance. It is also meaningful that basic data on determinants of private-led investment decision-making were presented to stake-holders such as venture capital, accelerator, and start-up support institutions.
Keywords
TIPS(Tech Incubator Program for Startups); AHP analysis; Investment Determinants; Technology-based Startups; Start-up Support Policy;
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