A Study on the Implications of Venture Capitalists for Software Companies

Abstract

Purpose: The primary aim is to have a thorough understanding of the effects of venture capital (VC) funding on software enterprises. This involves analysing a number of the association’s aspects, including its finances, operations, strategy and culture. The purpose of this study is to clarify the best practices for software companies looking to get VC funding. Its specific goal is to investigate how software businesses might use VCs’ resources and skills to achieve sustainable and long-term success. Among the ways it serves a wide variety of stakeholders are through insights and contributions to the improvement of scholarly knowledge and industry practices. Design/Methodology: An organised survey was sent to those who work as investors, executives and founders of software companies. The study’s investigation technique included interviewing a wide range of significant participants, including entrepreneurs, VCs and industry experts. The survey included 42 respondents in total, of whom 17 were VCs and 27 were software businesses in Bangalore city that received VC funding. Findings: The study included the execution of two statistical tests, namely one-way ANOVA and factor analysis, by the researcher. Both tests have shown statistical significance, hence accepting both alternative hypotheses proposed in the research. Limitations: The study’s sample of software businesses could not accurately reflect all software companies with VC funding. Establishing a causal relationship between VC funding and specific outcomes can be challenging. The results of this research may not be simply applied to other software-related sectors or all software firms. Originality Value: The uniqueness and importance of the research will depend on its ability to provide fresh insights, communicate creative points of view and contribute significantly to both academic understanding and real-world applications in VC and software companies.

Keywords: Venture Capitalist, Venture Capital Financing, Venture Capital Ecosystem, Implications, Software Companies

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