The dissertation consists of three essays that collectively contribute to the understanding of Venture Capital. The first essay focuses on security selection by venture investors in the Indian market. The analysis of a unique dataset reveals that venture investors in India primarily invest in common stock or convertible preference shares, with convertible securities being preferred for technology-related ventures. Additionally, experienced venture capitalists in India show a preference for downside protection, and foreign venture firms commonly use convertible preferred securities for this purpose. The study also highlights the influence of venture valuation and revenue multiple on security selection.

The second essay explores the relationship between investor syndication and firm valuation. By examining a comprehensive dataset from 2005 to 2020, the study finds that firms generating substantial investor interest tend to command higher valuations. This indicates the significance of signaling mechanisms in venture valuation, where investor syndication serves as a powerful signal for a firm's potential success. The essay provides insights into investor behaviour and its impact on valuation dynamics within the startup ecosystem.

The third essay analyzes investment duration, exit types, and returns in the Indian venture capital landscape. The study uses data from 1190 VC investments and exits between 2000 and 2017 and reveals that the average investment duration in India is 4.55 years, with M&A being the most common exit route. The mean return to investors is found to be 13.25 percent. The essay also explores the correlation between investment duration, exit type, and returns, showing that the number of investors in a venture affects the investment duration, and the type of exit influences returns. Optimal funding quantum and rounds are associated with higher returns, while start-ups with four to six investors generate the highest returns. The analysis indicates that structured contracts and securities designed to protect against risk contribute to higher returns for venture capitalists.

Collectively, these essays deepen the understanding of venture capital by examining security selection, impact of syndication on valuation, and the relationship between investment duration, exit types, and returns. The findings have implications for entrepreneurs, investors, and policymakers navigating the complexities of venture capital and entrepreneurship.