Dr. Ghousia Khatoon1, Dr. Hussaini Bala2, Dr. Umair Zahid3, and Dr. Abubakar Balarabe Karaye4
1,2,4 Departments of Accounting, Banking and Finance, Tishk International University
Erbil, Kurdistan Region- Iraq
3University of Suffolk, London, United Kingdom
Email: [email protected], [email protected], and [email protected]
DOI: 10.23918/ICABEP2022p29
Abstract
The start-ups in US Silicon Valley are flourishing today because of the excellent funding and mentoring services provided by venture capitalists. Venture capitalists make the dreams of entrepreneurs come true by risking their capital. There is a great deal of the necessity for harmony between the two. This is possible by resolving the conflicts or disagreements between them. According to Yinglan Tan, venture capitalists and entrepreneurs are like tango dancing. Just like a pair of tango dancers, they both need to understand each other’s roles and responsibilities and coordinate their moves in the best possible ways to ensure a win-win situation. This research is a humble effort to understand the factors of conflict and to recommend strategies to resolve the issues. Data is collected through questionnaires from venture capitals and entrepreneurs based in Bangalore, India. The factors of conflicts are studied from the perspectives of both entrepreneurs and venture capitalists. Some of the causes of conflicts from the entrepreneur’s perspective are the venture capitalists take a Board seat in the funded companies and dominate the entrepreneurs and also they interfere in the routine activities and this killing the creativity and innovative spirit. From the viewpoint of venture capitalists, entrepreneurs conceal the facts from the business plan and entrepreneurs may not want the company to go for IPO since they have an emotional attachment.
Keywords: Entrepreneurs venture capitalists, exploratory research, Bangalore, India
ICABEP2022
4th International Conference on Accounting, Business, Economics and Politics
Organized by
Tishk International University, College of Administration and Economics, Salahaddin University-Erbil, and
University of Szczecin, Poland.
