Determinants of Venture
Capital Investments in Tech Start-UPS

Tech start-ups and, especially, unicorns have become a hot topic of today business world. Significant amounts
of money have been invested in this sector by venture capital funds in the hope of a good return. However,
the criteria and determinants of these investments are fuzzy, and the author has identified a gap in the
scientific literature.
Therefore, the objective of the present paper is to discover the determinants of venture capital investments in
tech start-ups. Based on a secondary dataset, a multifactorial regression model is proposed that explains the
appetence for investment of venture capital funds into tech start-ups. The model shows that the amount of
funding in start-ups will increase as the number of unicorns and exits strengthens.