Entrepreneurial success: differing perceptions of entrepreneurs and venture capitalists

The recent credit crisis has made it more difficult for entrepreneurs to find funding. It is increasingly important for entrepreneurs to know what is important to venture capitalists (VCs) when they make their funding decisions. The authors interviewed entrepreneurs and VCs to determine the traits these groups perceive as necessary for entrepreneurial success. They find that entrepreneurs cite traits inherent in their nature significantly more than VCs. Additionally, entrepreneurs who do not have previous VC funding experience differ significantly from VCs in identifying important factors for VC funding. In contrast, entrepreneurs with previous VC funding experience do not differ from VCs in identifying important funding decision factors.