Texas Capital Network Survey: Critical Factors in Venture Funding

This report uses survey data on current and prospective members of the Texas Capital Network to discuss and contrast the characteristics of private and institutional investor respondents in terms of funding amounts and preferences. The report is organized as follows: a brief overview of the U.S. venture capital industry, survey methodology and characteristics of respondents, and key similarities and differences in the investment decisions of private and institutional investor respondents in terms of: investment amounts in start-up ventures; relative importance of the venture's stage of development and proximity to investor; characteristics of the venture's management team, product/service, business plan, and financials; desired degree of involvement with the venture; relative importance of the characteristics of the referral network; funding rates for unsolicited business plans; and an evaluation of services provided by the Texas Capital Network (TCN).