41 Chapter IV Findings and Analysis The primary purpose of the Findings and Analysis chapter is to present the facts, patterns, relationships, and insights derived from the data. It involves systematically organizing and summarizing the findings in a logical and coherent manner. This chapter allows readers to understand the significance of the research and the extent to which the research objectives or hypotheses have been achieved. 4.1 Profile of Participants For demographic sample statistics, men were 28 (93%), and women were 2 (7%) based on a total of 30 people according to gender. Regarding age, the subjects were investigated as 3 in the 20s (10%), 15 in their 30s (50%), 11 in 40s (37%), and one in their 50s (26.7%). As for education, 21 bachelor's degree holders (70%), 9 master's degree holders (30%), and 0 doctoral degree holders (0%) participated. Concerning major, business administration/economics took up the most number at 15 (50%), followed by 7 for MBA (23.3%), 5 for technology/engineering, 1 for humanity/social science (3.3%), and 2 for others (6.7%). All of the sample have at least 1 year experience in investing. Classification Total Venture Capitalist Angel Investors Number % Number % Number % Gender Men 28 93 14 93 14 93 Women 2 7 1 7 1 7 Total 30 100 15 100 15 100 Age 20s 3 10 1 6.7 2 14 30s 15 50 7 47 8 53 40s 11 37 6 40 5 33 50s 1 3 1 6.7 0 0 Total 30 100 15 100 15 100 Education Bachelor 21 70 12 80 9 60 Master 9 30 3 20 6 40 Doctor 0 0 0 0 0 Total 30 30 15 100 15 100 Major Business Administration/Economics 15 50 7 46.7 8 53.3 42 Humanities/Social Science 1 3.3 0 0 1 6.7 Technology/Engineering 5 16.7 4 26.7 1 6.7 MBA 7 23.3 4 26.7 3 20 Others 2 6.7 0 0 2 13.3 Total 30 100 15 100 15 100 Table 5 Statistical Characteristics of Samples 4.2 Factors of Venture Capital and Angel Investor Funding in Startups and Analysis 4.2.1 Analysis Results of Major Investment Determinants The importance rankings of the evaluation areas for venture capital investment determinants in startups, namely entrepreneur, product/service, market, and finance, are presented in Table 6. According to the results, the importance of the product/service was found to be the highest overall, followed by the entrepreneur. For venture capitalists, the priority order of importance was as follows: entrepreneur (0.358), product/service (0.346), market (0.164), and financial factors (0.132). On the other hand, for other investors, the priority order of importance was as follows: product/service (0.393), entrepreneur (0.313), market (0.164), and financial factors (0.130). These findings highlight the divergent perspectives of venture capitalists and startup support experts in terms of the relative importance they place on different evaluation areas when making investment decisions in startups. 43 Evaluation Area Total Venture Capitalist Angel Investors Weighted Value Priority Weighted Value Priority Weighted Value Priority Entrepreneur 0.336 2 0.358 1 0.313 2 Product/Service 0.370 1 0.346 2 0.393 1 Market 0.164 3 0.164 3 0.164 3 Finance 0.131 4 0.132 4 0.13 4 Consistency Rate 0.08 0.012 0.004 Table 6 Importance of Category Items in Each Specialized Area 4.2.2 Analysis of Effect Value by Detailed Factor Based on the analysis of each aspect's importance, this study also calculated the effect values, which represent the weighted values of each factor aspect. The effect value is obtained by squaring each factor aspect's value, indicating the priority of capability factors required from the overall group. According to Table 7, the factors were ranked in the following order of importance: value of product, business compatibility, innovation, technical expertise, and management/operational competence. This ranking suggests that value of product was considered the most important factor, followed by business compatibility, innovation, technical expertise, and management/operational competence, respectively. These findings provide insights into the factors that are perceived to have the greatest impact on investors investment decisions in startups. EVALUATION AREA IMPORTANCE EVALUATION FACTORS IMPORTANCE WEIGHTED VALUE PRIORITY Entrepreneurs 0.3355 Management/ Operation Competence 0.230 0.0772 5 Technical Expertise 0.237 0.0794 4 Entrepreneur’s Character 0.175 0.0587 8 44 Business Compatibility 0.358 0.1202 2 Product and service 0.3695 Global Potentiality 0.119 0.0438 11 Technical Advantage 0.203 0.0752 6 Value of Product 0.381 0.1407 1 Innovation 0.297 0.1098 3 Market 0.164 Market Size 0.375 0.0616 7 Market Growth 0.298 0.0488 9 Regulation 0.174 0.0286 14 Rival Competition 0.153 0.0250 15 Finance 0.131 Corporate value 0.236 0.0309 12 Profitability 0.352 0.0461 10 Investment stage 0.189 0.0247 16 Cash flows 0.224 0.0293 13 Table 7 Effect Value Priority for Total Cases 4.2.3 Comparative Analysis Result Based on the analysis of complex weighted value priorities, Table 8 presents the rankings for venture capitalists and other investors. For venture capitalists, the order of priority was as follows, Business Compatibility, Value of Product, Innovation, Management/ Operation Competence. Respectively, from first priority to fourth priority. EVALUATION AREA EVALUATION FACTORS VENTURE CAPITALIST ANGEL INVESTORS Importance Weighted Value Priority Importance Weighted Value Priority Entrepreneurs Management/ Operation Competence 0.232 0.083 4 0.228 0.071 6 Technical Expertise 0.216 0.077 5 0.258 0.081 5 Entrepreneur’s Character 0.179 0.064 7 0.171 0.053 8 45 Business Compatibility 0.372 0.133 1 0.344 0.108 2 Product and service Global Potentiality 0.114 0.039 11 0.123 0.048 9 Technical Advantage 0.187 0.065 6 0.220 0.087 4 Value of Product 0.374 0.129 2 0.388 0.152 1 Innovation 0.325 0.112 3 0.269 0.106 3 Market Rival competition 0.120 0.020 16 0.185 0.030 13 Regulation 0.200 0.033 12 0.149 0.024 15 Market size 0.370 0.061 8 0.381 0.063 7 Market growth 0.311 0.051 9 0.285 0.047 10 Finance Corporate value 0.239 0.031 13 0.233 0.030 14 Profitability 0.358 0.047 10 0.345 0.045 11 Investment stage 0.212 0.028 14 0.166 0.022 16 Cash flows 0.191 0.025 15 0.256 0.033 12 Table 8 Comparative Analysis Between the Two Groups On the other hand, for other investors, the order of priority was as follows: Value of Product, Business Compatibility, Innovation, Technical Advantage. Consecutively, from first priority to fourth priority. The findings indicate that both venture capitalists and investors agreed on the importance of value of product and business suitability as the first two priority. However, there were some differences in the rankings and priorities assigned to the 16 evaluation items in the two hierarchies of startup investment determinants between the two groups.