Operating Guidelines for Effective Venture Capital Funds Management

Extending Liles' work in the development of an effective "enabling strategy," the author has formulated a set of 20 operating guidelines for effective venture capital funds management. The guidelines presented in this paper are the result of a detailed study of 368 venture capital investments which were analyzed along three critical investment parameters. These parameters are: (1) the capital requirements of investee ventures, (2) investment liquidity, and (3) the riskiness of venture capital investing. In addition, the characteristics of investments in "start-up" and "later-round" situations are compared.