| dc.description.abstract | Globally, entrepreneurs have ideas that require substantial financing to implement but lack the
funds to finance these projects. Venture capitalists (VCs) represent one solution to financing
high-risk, potentially high-reward projects. VCs typically identify, evaluate and invest in high
risk investments that limited partners would otherwise find difficult to invest in directly. In
Kenya, the VC industry has been in existence since the 1990s. However, operation volumes are
still small in scale as VC firms account for a tiny share of the financial market thereby rising
questions on what challenges constrain their growth/ development.
Though several factors have been put forward as major determinants of VC activity, there seems
to be no agreement among various researchers. This survey on 12 Venture capital firms
registered and licensed by CMA to operate in Kenya establishes the factors that determine
financial performance of VC firms in Kenya as; portfolio company characteristics, Venture
capital characteristics, Investment process, exit process, Portfolio Company management and
external environmental factors. There are also some notable strong correlations between the
independent variables themselves. | en_US |
