Providing an Exit Route for Exiting Venture Capital Funds in Knowledge-based Defense Sector

Mashhadi, Reza; Khodabakhsh, Shahab Odin

Providing an Exit Route for Exiting Venture Capital Funds in Knowledge-based Defense Sector

Document Type : Original Article

Authors

¹ PhD in Economics, Faculty of Management and Economics, Islamic Azad University, Science and Research Branch, Tehran, Iran.

² M.A in Business Administration, Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran.

Abstract

The purpose of this study is to provide an exit route for exiting the financing provided by venture capital funds involved in knowledge-based defense businesses. This paper can be classed as practical research, its method can be described as a descriptive library survey and the data was gathered through a questionnaire. The subject under study is the knowledge-based defense companies in Iran. The sample population used for this study included the participants in capital market and venture capital. The sample was chosen as 15 experts who were familiar with venture capital in defense-based knowledge companies identified through professional networks such as LinkedIn. The results suggest that exiting from risky venture capital investments should take place within the maturity phase and in several stages. Knowledge-based defense projects are better served by choosing trustees out of professional, trustable and recognized defense broking agents. Furthermore, venture capital investment funds involved in knowledge-based defense will be better managed over by professional who are knowledgeable, and have experienced in the defense industries. Finally, if management is to be assigned to a third party, it would be appropriate to sell or transfer shares to investors who are involved in the same industry.

Keywords