The analysis of OLC stages and the venture capital investors from Adizes life cycle theory

Abstract

Purpose

The purpose of this paper is to investigate how the organization’s life-cycle stages influence the venture capital investor’s decision. The present study also aims to explore the relationships between life cycle stages and financing decisions of investors of an organization.

Design/methodology/approach

The research focuses on a qualitative approach and adopts descriptive and case study methods to perceive the data collected. By the multi-case research approach, the authors conducted interviews in analytics and technological companies. The data originates from semi-structured interviews and publicly available data with various venture capital firms.

Findings

In this research, 10 stages of the organization’s life cycle from the Adizes theory have been considered. It starts from the first two stages as courtship and infancy to bureaucracy and death to the final stages. The results and findings indicate that life cycle stages influence venture capitalist financing decisions.

Research limitations/implications

The implications of the current research help venture capitalist to take investment decisions according to the life cycle stage of the organization. Furthermore, according to the stage of the organization, the owner of a venture capital firm can approach various venture capitalists for the betterment of the organization.

Originality/value

The novelty of this research is to consider a case-based approach involving Adizes’ life cycle in all 10 stages of venture capital firms that affect venture capitalists.

Citation

Verma, P. and Kumar, V. (2022), "The analysis of OLC stages and the venture capital investors from Adizes life cycle theory", International Journal of Organizational Analysis, Vol. 30 No. 6, pp. 1819-1843. https://doi.org/10.1108/IJOA-01-2021-2592