Entrepreneurs should always regard venture capitalists as the enemy. Using the academic literature
discuss the extent to which this statement is true.
To successfully pass this assessment, students need to address the following:
Consult and summarise the literature around the role of venture capitalists in the growth of start-ups. Students should discuss the balance between dilution of ownership for founders versus the potential value that may be added by external investors such as reputation, network, expertise and experience (Critical Evaluation, Academic Writing).
Discuss the extent to which venture capital deal structures play a role in creating potential conflicts between VCs and entrepreneurial teams.
Pay particular attention to research on the role of venture capitalists in helping to build companies and consider the evidence as to whether they help or hinder entrepreneurs (Critical Evaluation, Academic Writing).
Comment on how the role of VCs is changing and the current state of the industry and what other alternatives could develop for funding ventures in the future (Critical Evaluation,
Analysis)
The above criteria are not exhaustive and students are encouraged to think originally and examine
the question from a variety of perspectives. The question is open ended and is intended to be thought
provoking – there is no right or wrong answer! The marking criteria of Comprehension, Critical
Evaluation, Analysis and Academic Writing run throughout this essay in a holistic manner and it will
be marked accordingly.
