BRANDON CAPITAL PARTNERS.
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Our chosen company is, "Brandon Capital Partners". There is very basic information on the company website. Further information can be searched by looking for venture capital companies. The information found can then be used to answer the questions of the assignment and can also be used as information given by the company.
A sample assignment done by previous students is also attached and they got 70% marks for it.
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BRANDON CAPITAL PARTNERS
Strategic Management Control Systems
Business Report
[Brandon Capital Partners]
Muzamil Hussain s3760574
Xin He s3696080
Joseph Alshaer s3695836
Mohammad Kabir Hossain s3765161
Lecturer: Dr Hui Situ
Tuesday 2:30 pm Class
RMIT University
Strategic Management Control Systems
Business Report
[Brandon Capital Partners]
Muzamil Hussain s3760574
Xin He s3696080
Joseph Alshaer s3695836
Mohammad Kabir Hossain s3765161
Lecturer: Dr Hui Situ
Tuesday 2:30 pm Class
RMIT University
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1
BRANDON CAPITAL PARTNERS
Executive summary
Venture capitalists provide the required fund to start-up ventures. They normally charge more
than the banks for their service as due to the presence of huge risk factors in a start-up venture.
This study is also about an Australian venture capitalist “Brandon Capital Partners”. Brandon
Capital Partners is one of the leading venture capitalists in Australia. It assists in ventures that
are solely presentable to the healthcare sector.
This study is divided broadly into two parts. The first part is oriented with conducting an
industry analysis for Brandon Capital Partners. The analysis shows that the Australian venture
capital industry is fiercely competitive.However, the number of competitive firms have
increased. The Industry Analysis suggests the need to boost the innovating capabilities and adopt
various strategies to appear more attractive to entrepreneurs as compared to major venture
capitalists in Australia.
Under the company analysis of Brandon Capital Partners; its value chain operations,
performance measures, pricing model, cost-volume-profit analysis, budgeting, information
systems overview and sustainability are being studied. The analysis of all these areas suggested a
few areas of improvement for Brandon Capital Partners. These are managing talent by recruiting
the most relevant people and providing them appropriate training on new skills, identifying KPIs
to measure the employees’ performance, and using business analytics to ensure real-time access
to huge pieces of data and drive making data-oriented decisions.
BRANDON CAPITAL PARTNERS
Executive summary
Venture capitalists provide the required fund to start-up ventures. They normally charge more
than the banks for their service as due to the presence of huge risk factors in a start-up venture.
This study is also about an Australian venture capitalist “Brandon Capital Partners”. Brandon
Capital Partners is one of the leading venture capitalists in Australia. It assists in ventures that
are solely presentable to the healthcare sector.
This study is divided broadly into two parts. The first part is oriented with conducting an
industry analysis for Brandon Capital Partners. The analysis shows that the Australian venture
capital industry is fiercely competitive.However, the number of competitive firms have
increased. The Industry Analysis suggests the need to boost the innovating capabilities and adopt
various strategies to appear more attractive to entrepreneurs as compared to major venture
capitalists in Australia.
Under the company analysis of Brandon Capital Partners; its value chain operations,
performance measures, pricing model, cost-volume-profit analysis, budgeting, information
systems overview and sustainability are being studied. The analysis of all these areas suggested a
few areas of improvement for Brandon Capital Partners. These are managing talent by recruiting
the most relevant people and providing them appropriate training on new skills, identifying KPIs
to measure the employees’ performance, and using business analytics to ensure real-time access
to huge pieces of data and drive making data-oriented decisions.
2
BRANDON CAPITAL PARTNERS
Table of Contents
1. Introduction 3
2. Part 1: Industry Analysis 4
2.1 Porter’s Five Forces Model 5
2.1.1Threat of New Entrants 5
2.1.2Bargaining Power of Suppliers 6
2.1.3Bargaining Power of Buyers 6
2.1.4The Threat of Substitute Products or Services 7
2.1.5Industry Rivalry 7
3. Competitive Strategy 8
3.2Competitive Base 8
3.3Target Market 9
4. Part 2: Company Report 10
4.1 Business Primary Activities 10
4.2Value Chain Analysis 11
4.3Performance Measure using balanced Scorecard 13
Financial Perspective 13
Customer Perspective 14
Internal Business Processes 14
Learning and Growth 15
BRANDON CAPITAL PARTNERS
Table of Contents
1. Introduction 3
2. Part 1: Industry Analysis 4
2.1 Porter’s Five Forces Model 5
2.1.1Threat of New Entrants 5
2.1.2Bargaining Power of Suppliers 6
2.1.3Bargaining Power of Buyers 6
2.1.4The Threat of Substitute Products or Services 7
2.1.5Industry Rivalry 7
3. Competitive Strategy 8
3.2Competitive Base 8
3.3Target Market 9
4. Part 2: Company Report 10
4.1 Business Primary Activities 10
4.2Value Chain Analysis 11
4.3Performance Measure using balanced Scorecard 13
Financial Perspective 13
Customer Perspective 14
Internal Business Processes 14
Learning and Growth 15
3
BRANDON CAPITAL PARTNERS
4.3Product/service costing 15
4.4Cost-Volume-Profit Analysis 17
4.5Budgeting 18
4.6Information System 19
4.7Sustainability 20
Conclusion 20
Recommendation 20
References 22
BRANDON CAPITAL PARTNERS
4.3Product/service costing 15
4.4Cost-Volume-Profit Analysis 17
4.5Budgeting 18
4.6Information System 19
4.7Sustainability 20
Conclusion 20
Recommendation 20
References 22
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4
BRANDON CAPITAL PARTNERS
1. Introduction
The existence of venture capital firms like “Brandon Capital Partners” is a response to the
growing need for a body,that provides financial support more specifically to a startup venture.
Firms can broadly be divided into a few distinct categories. Out of all these types of firms, start-
up ventures in particular face problems in sourcing investment for their entrepreneurial ventures.
These firms generally do not receive loans from banks as due to the presence of high-risk factors
in such ventures. When this happens these ventures are left with few options like venture capital
firms to source the required investment (Brandoncapital.com.au 2019). Brandon Capital Partners
currently manages four funds: AUD$230 million MRCF BTF; AUD$200 million Medical
Research Commercialisation Fund (MRCF 3); AUD$51 million Medical Research
Commercialisation Fund (MRCF IIF, LP and MRCF Trust) - now fully invested; AUD$ 50
million Brandon Biosciences Fund 1 (BBF1 IIF and BBF1 Trust) - now fully invested
(Brandoncapital.com.au 2019).
The main purpose of this study is to conduct an industry analysis for Brandon Capital
Partners. Besides, the study also assesses how accounting information and other types of
information are managed here.
BRANDON CAPITAL PARTNERS
1. Introduction
The existence of venture capital firms like “Brandon Capital Partners” is a response to the
growing need for a body,that provides financial support more specifically to a startup venture.
Firms can broadly be divided into a few distinct categories. Out of all these types of firms, start-
up ventures in particular face problems in sourcing investment for their entrepreneurial ventures.
These firms generally do not receive loans from banks as due to the presence of high-risk factors
in such ventures. When this happens these ventures are left with few options like venture capital
firms to source the required investment (Brandoncapital.com.au 2019). Brandon Capital Partners
currently manages four funds: AUD$230 million MRCF BTF; AUD$200 million Medical
Research Commercialisation Fund (MRCF 3); AUD$51 million Medical Research
Commercialisation Fund (MRCF IIF, LP and MRCF Trust) - now fully invested; AUD$ 50
million Brandon Biosciences Fund 1 (BBF1 IIF and BBF1 Trust) - now fully invested
(Brandoncapital.com.au 2019).
The main purpose of this study is to conduct an industry analysis for Brandon Capital
Partners. Besides, the study also assesses how accounting information and other types of
information are managed here.
5
BRANDON CAPITAL PARTNERS
2. Part 1: Industry Analysis
This section assesses the industry in which Brandon Capital Partners operates using the relevant
management models.
2.1 Porter’s Five Forces Model
2.1.1Threat of New Entrants
The positive financial trend of this industry will attract more entrants. The initial capital outlays
are pretty low because wages are the main cost component and they do not need to spend too
much on purchasing expensive equipment and materials. Also, the revenue of this industry is
$414 million in 2019 and is projected to increase by 19% at least (IBISWorld 2019).
Figure 1: Venture Capital Industry Statistics
(Source: IBISworld.com.au 2019)
However, first-time funds and brand image remain the most obvious barriers to new
entrants. With the early stqges of the start ups the people who are knkown to invest in the VC
fund are found betting in to the team as much as possible keeping their investments on main
focus. it can also be ssaid that when the evaluators wwil be found evaluating the funds, they will
BRANDON CAPITAL PARTNERS
2. Part 1: Industry Analysis
This section assesses the industry in which Brandon Capital Partners operates using the relevant
management models.
2.1 Porter’s Five Forces Model
2.1.1Threat of New Entrants
The positive financial trend of this industry will attract more entrants. The initial capital outlays
are pretty low because wages are the main cost component and they do not need to spend too
much on purchasing expensive equipment and materials. Also, the revenue of this industry is
$414 million in 2019 and is projected to increase by 19% at least (IBISWorld 2019).
Figure 1: Venture Capital Industry Statistics
(Source: IBISworld.com.au 2019)
However, first-time funds and brand image remain the most obvious barriers to new
entrants. With the early stqges of the start ups the people who are knkown to invest in the VC
fund are found betting in to the team as much as possible keeping their investments on main
focus. it can also be ssaid that when the evaluators wwil be found evaluating the funds, they will
6
BRANDON CAPITAL PARTNERS
be able to find the track records of the investors. This will help them to detect it out whether they
have chosen right organization to invest or not. However few of the investors are following the
blanket rule which helps them tracking down the past records and evaluate the team dynamics.
Therefore the role of the VC is to analyze the past record and find out the best client among the
pool, convincing them and later on working with their money to provide returns to the
stakheoldrers of the company. With these process executions in mind the emerging managers of
the organization also are involvyed in building up the brand with them which might be build both
as a firm and as individual partners (Hernandez,2014).
2.1.2Bargaining Power of Suppliers
The Venture Capitalists or the VC firms are known to fund all different type of organization
starting right from the biotech to te dotcom organizations. It the present dayts the VC is also
funding businesses which deals with peer to peer finance organizations. The VC organization is
known to plan their working by opening up a funding zone where they collect the huge amount
of money from thhe high net worth incoming individuals and other multinational organizations.
They then ahnd over the fund to the small start up institutions. According to the analysis from the
Global venture funding company ithas been found out that the VC investment has reacged to
more than $53 billion of dolalars making more than 2,658 deals. It has also be found out roml
further research that they are slowly growing in their segment and raisng more and more fund.
2.1.3Bargaining Power of Buyers
It has been found out that the buying power is quite low. According to the information collected
byKPMG (2019) shows the capital invested in a business at a later stage is consistently higher
than the early stage. Venture capitalists and VC firms all prefer investing in a business at a later
stage because there is a great deal of uncertainty about the company’s future. Also, a fund
manager isknown for making various types of decisions regarding the investemnets from the
individuals and the organizations. They are also kwno to make relevant requirement after
analyzing the guidelines for the programme. In Ausstralia taking the example of Biomediacl
BRANDON CAPITAL PARTNERS
be able to find the track records of the investors. This will help them to detect it out whether they
have chosen right organization to invest or not. However few of the investors are following the
blanket rule which helps them tracking down the past records and evaluate the team dynamics.
Therefore the role of the VC is to analyze the past record and find out the best client among the
pool, convincing them and later on working with their money to provide returns to the
stakheoldrers of the company. With these process executions in mind the emerging managers of
the organization also are involvyed in building up the brand with them which might be build both
as a firm and as individual partners (Hernandez,2014).
2.1.2Bargaining Power of Suppliers
The Venture Capitalists or the VC firms are known to fund all different type of organization
starting right from the biotech to te dotcom organizations. It the present dayts the VC is also
funding businesses which deals with peer to peer finance organizations. The VC organization is
known to plan their working by opening up a funding zone where they collect the huge amount
of money from thhe high net worth incoming individuals and other multinational organizations.
They then ahnd over the fund to the small start up institutions. According to the analysis from the
Global venture funding company ithas been found out that the VC investment has reacged to
more than $53 billion of dolalars making more than 2,658 deals. It has also be found out roml
further research that they are slowly growing in their segment and raisng more and more fund.
2.1.3Bargaining Power of Buyers
It has been found out that the buying power is quite low. According to the information collected
byKPMG (2019) shows the capital invested in a business at a later stage is consistently higher
than the early stage. Venture capitalists and VC firms all prefer investing in a business at a later
stage because there is a great deal of uncertainty about the company’s future. Also, a fund
manager isknown for making various types of decisions regarding the investemnets from the
individuals and the organizations. They are also kwno to make relevant requirement after
analyzing the guidelines for the programme. In Ausstralia taking the example of Biomediacl
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BRANDON CAPITAL PARTNERS
Translation Fund ( BTF) which is not known to provide automatic capital to the organizations.
the organizations thus hav eto satify few of the criterias whicha re listed below:
Majority of the employees who aare working in the organization and the assest involved
by the organization should be present in side the country. They also will have too use the
whole initial investment within the boundary of the country.
the average revenue which is earned by the ccompaany should be less than $25 million
every working year (Australian Government 2019).
Figure 2: Global median deal size ($M) by stage (2012-2019)
(Source: KPMG 2019)
2.1.4The Threat of Substitute Products or Services
There are a few similar services in the market. In Australia, the top 12 VC firms have
their investment priority. For example, Telstra Ventures that is known to focus majorly on the
technology which is used in the market and other types of startup and high groing potentials
individuals. The Brandon Capital is known to specialize in boosting the growth of the company
and thus improving the overall medical outcomes based on life science firms. (Hassell 2019).
2.1.5Industry Rivalry
BRANDON CAPITAL PARTNERS
Translation Fund ( BTF) which is not known to provide automatic capital to the organizations.
the organizations thus hav eto satify few of the criterias whicha re listed below:
Majority of the employees who aare working in the organization and the assest involved
by the organization should be present in side the country. They also will have too use the
whole initial investment within the boundary of the country.
the average revenue which is earned by the ccompaany should be less than $25 million
every working year (Australian Government 2019).
Figure 2: Global median deal size ($M) by stage (2012-2019)
(Source: KPMG 2019)
2.1.4The Threat of Substitute Products or Services
There are a few similar services in the market. In Australia, the top 12 VC firms have
their investment priority. For example, Telstra Ventures that is known to focus majorly on the
technology which is used in the market and other types of startup and high groing potentials
individuals. The Brandon Capital is known to specialize in boosting the growth of the company
and thus improving the overall medical outcomes based on life science firms. (Hassell 2019).
2.1.5Industry Rivalry
8
BRANDON CAPITAL PARTNERS
As the teams are getting developed day by day the market is also developing to see
saturation in the area of VC in the case of various types of investment made. `1(KPMG 2019). In
Australia, the main competitor to Brandon Capital is GBS Venture Capital Firm which manages
over 400 million-dollar funds and has recently started investing in medical devices and
diagnostics related firms (Hassell 2019).
3. Competitive Strategy
3.2Competitive Base
On a broader aspect, two factors make up the competitive base for venture capital firms in
Australia. These are the number of deals they win, and the amount they spend every year on the
infrastructural development and the operations (Zhelyazkov and Gulati 2016). The industry is
becoming fiercely competitive as due to the decreasing number of deals in 2019 (Zhelyazkov and
Gulati 2016). The venture capital firms are left with fewer deals to compete for. The below-
mentioned statistics confirm what is being stated here.
BRANDON CAPITAL PARTNERS
As the teams are getting developed day by day the market is also developing to see
saturation in the area of VC in the case of various types of investment made. `1(KPMG 2019). In
Australia, the main competitor to Brandon Capital is GBS Venture Capital Firm which manages
over 400 million-dollar funds and has recently started investing in medical devices and
diagnostics related firms (Hassell 2019).
3. Competitive Strategy
3.2Competitive Base
On a broader aspect, two factors make up the competitive base for venture capital firms in
Australia. These are the number of deals they win, and the amount they spend every year on the
infrastructural development and the operations (Zhelyazkov and Gulati 2016). The industry is
becoming fiercely competitive as due to the decreasing number of deals in 2019 (Zhelyazkov and
Gulati 2016). The venture capital firms are left with fewer deals to compete for. The below-
mentioned statistics confirm what is being stated here.
9
BRANDON CAPITAL PARTNERS
Figure 3: PE (Private Equity) & VC (Venture Capital) Deal Value
(Source: Cox Pahnke et al. 2015)
The statistics shown as above indicates that the deal count has plummeted for both PE
and VC. However, the spending has maintained a similar trend as that of the last year.
Now, in such business circumstances, the one with better capability to attract investors
and win a deal as well will have the maximum opportunities. Brandon Capital Partners will have
to keep investing in innovative ideas to enhance its capability in information customization.
Information customization will help to understand the demand and give standout offers to clients
(Galloway et al. 2017). Brandon Capital Partners is one of the leading venture capital firms in
Australia. The emerging business demands as stated in this section appear achievable for
Brandon Capital Partners considering its history of expertise in the VC industry. However, there
are many other firms also possessing equally good or even better strategic capabilities than
Brandon Capital Partners. Hence, Brandon Capital Partners will expectedly receive tough
competition from the likes of One Ventures, Square Peg and GBS Venture Capital Firm in terms
BRANDON CAPITAL PARTNERS
Figure 3: PE (Private Equity) & VC (Venture Capital) Deal Value
(Source: Cox Pahnke et al. 2015)
The statistics shown as above indicates that the deal count has plummeted for both PE
and VC. However, the spending has maintained a similar trend as that of the last year.
Now, in such business circumstances, the one with better capability to attract investors
and win a deal as well will have the maximum opportunities. Brandon Capital Partners will have
to keep investing in innovative ideas to enhance its capability in information customization.
Information customization will help to understand the demand and give standout offers to clients
(Galloway et al. 2017). Brandon Capital Partners is one of the leading venture capital firms in
Australia. The emerging business demands as stated in this section appear achievable for
Brandon Capital Partners considering its history of expertise in the VC industry. However, there
are many other firms also possessing equally good or even better strategic capabilities than
Brandon Capital Partners. Hence, Brandon Capital Partners will expectedly receive tough
competition from the likes of One Ventures, Square Peg and GBS Venture Capital Firm in terms
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10
BRANDON CAPITAL PARTNERS
of innovation excellence, infrastructural development works and strategic objectives towards
clients’ demands (Galloway et al. 2017).
3.3Target Market
In the venture capital industry, firms are very selective with their clients. They do it to
keep their horizon of knowledge limited to a few sectors. It also helps to have good measures or
calculations of probable risks in the target market. The wider the area of operations is, the more
knowledge of the areas it will require. The Brandon Capital Partners offer its services to Biotech
and Pharma ventures. It offers venture capital assistance to thehealthcare sector. It does
notprovide venture capital solutions to industries like intangible technology, consumable goods,
non-consumable goods, agriculture, resources, and property and infrastructure. Brandon Capital
Partners is one of the leading science venture capital firms in Australia. It invests in quality
medical science in ventures that promise to offer potential and improved medical outcomes. It
enjoys excellent access to academic and research institutions, which helps it to apply venture and
seed funding to innovative life science-based companies. Besides, it provides knowledge on the
industry and operational expertise to innovative science ventures (Wuebker, Hampl and
Wuestenhagen 2015). The clients of Brandon Capital Partners can be categorized into three
distinct categories. These are Seed Capital, Early Venture and Growth Venture (Hoenig and
Henkel 2015). Brandon Capital Partners currently manages more than three funds raised after
2008. The company has a presence both in Australia and outside Australia. In Australia, it has
offices in Sydney and Melbourne. In the United States, Brandon Capital Partners has offices or
presence in California and Palo Alto (Hoenig and Henkel 2015).
4. Part 2: Company Report
4.1 Business Primary Activities
BRANDON CAPITAL PARTNERS
of innovation excellence, infrastructural development works and strategic objectives towards
clients’ demands (Galloway et al. 2017).
3.3Target Market
In the venture capital industry, firms are very selective with their clients. They do it to
keep their horizon of knowledge limited to a few sectors. It also helps to have good measures or
calculations of probable risks in the target market. The wider the area of operations is, the more
knowledge of the areas it will require. The Brandon Capital Partners offer its services to Biotech
and Pharma ventures. It offers venture capital assistance to thehealthcare sector. It does
notprovide venture capital solutions to industries like intangible technology, consumable goods,
non-consumable goods, agriculture, resources, and property and infrastructure. Brandon Capital
Partners is one of the leading science venture capital firms in Australia. It invests in quality
medical science in ventures that promise to offer potential and improved medical outcomes. It
enjoys excellent access to academic and research institutions, which helps it to apply venture and
seed funding to innovative life science-based companies. Besides, it provides knowledge on the
industry and operational expertise to innovative science ventures (Wuebker, Hampl and
Wuestenhagen 2015). The clients of Brandon Capital Partners can be categorized into three
distinct categories. These are Seed Capital, Early Venture and Growth Venture (Hoenig and
Henkel 2015). Brandon Capital Partners currently manages more than three funds raised after
2008. The company has a presence both in Australia and outside Australia. In Australia, it has
offices in Sydney and Melbourne. In the United States, Brandon Capital Partners has offices or
presence in California and Palo Alto (Hoenig and Henkel 2015).
4. Part 2: Company Report
4.1 Business Primary Activities
11
BRANDON CAPITAL PARTNERS
Figure 4: Business Primary Activities
(Source: Hbr.org 2019)
The figure above shows the primary business activities of Brandon Capital Partners and
who the main players in the venture capital industry are: entrepreneurs who need funding;
investors who want a high rate of interest; investment bankers who need companies to sell; and
Brandon Capital Partners who make money for themselves by making a market for the other
three.
Brandon Capital Partners usually protects themselves from risk by co-investing with other firms.
There will be a lead investor and a number of followers. It is very rare for a VC firm to finance a
company entirely. Brandon Capital Partners currently have two or three main groups involved in
most stages of financing such as AustralianSuper (Brandoncapital.com.au 2019). They provide
financial support to emerging life science companies with high-growth potential. Such
relationships effectively provide further portfolio diversification - that is, the ability to invest in
more deals per dollar of invested capital. The presence of several VC firms increases credibility
and decreases the workload of the VC partners by getting others involved in evaluating the risks
during the due diligence period and in managing the deal.
4.2Value Chain Analysis
BRANDON CAPITAL PARTNERS
Figure 4: Business Primary Activities
(Source: Hbr.org 2019)
The figure above shows the primary business activities of Brandon Capital Partners and
who the main players in the venture capital industry are: entrepreneurs who need funding;
investors who want a high rate of interest; investment bankers who need companies to sell; and
Brandon Capital Partners who make money for themselves by making a market for the other
three.
Brandon Capital Partners usually protects themselves from risk by co-investing with other firms.
There will be a lead investor and a number of followers. It is very rare for a VC firm to finance a
company entirely. Brandon Capital Partners currently have two or three main groups involved in
most stages of financing such as AustralianSuper (Brandoncapital.com.au 2019). They provide
financial support to emerging life science companies with high-growth potential. Such
relationships effectively provide further portfolio diversification - that is, the ability to invest in
more deals per dollar of invested capital. The presence of several VC firms increases credibility
and decreases the workload of the VC partners by getting others involved in evaluating the risks
during the due diligence period and in managing the deal.
4.2Value Chain Analysis
Limited PartnerVenture Capital Start-up Exit
12
BRANDON CAPITAL PARTNERS
Figure 4: Value Chain
(Source: created by author)
The value chain activities of Brandon Capital Partners indicate it receives investments
from its limited partners in the form of Pension Funds, Endowments and Corporations. The funds
are supplied to entrepreneurial ventures (Hochberg, Lindsey and Westerfield 2015). Brandon
Capital Partners is very much dependent on its supplier partners. Hence, it is very much
important to ensure it has sufficient investors working for it. This is where the firm is tested for
its accounting information management and innovating capabilities (Hochberg, Lindsey and
Westerfield 2015). It normally does healthy advertisements for projects it receives from
entrepreneurs. It doesadvertisement through various media channels such as newspaper, social
media, website and others (Hochberg, Lindsey and Westerfield 2015).
In this way such as that mentioned above, it tries to be in regular touch with investors.
However, it needs to work on its managing capabilities of accounting information. The venture
capital firms in Australia are fighting hard for limited deal opportunities they have in the
industry. It shows that Brandon Capital Partners can do better than it does currently in terms of
Early Stage
and Late
Stage
Pension funds,
Corporations,
Endowments
IPO, Promoter
buyback, M&A,
and sale to other
strategic
investors
12
BRANDON CAPITAL PARTNERS
Figure 4: Value Chain
(Source: created by author)
The value chain activities of Brandon Capital Partners indicate it receives investments
from its limited partners in the form of Pension Funds, Endowments and Corporations. The funds
are supplied to entrepreneurial ventures (Hochberg, Lindsey and Westerfield 2015). Brandon
Capital Partners is very much dependent on its supplier partners. Hence, it is very much
important to ensure it has sufficient investors working for it. This is where the firm is tested for
its accounting information management and innovating capabilities (Hochberg, Lindsey and
Westerfield 2015). It normally does healthy advertisements for projects it receives from
entrepreneurs. It doesadvertisement through various media channels such as newspaper, social
media, website and others (Hochberg, Lindsey and Westerfield 2015).
In this way such as that mentioned above, it tries to be in regular touch with investors.
However, it needs to work on its managing capabilities of accounting information. The venture
capital firms in Australia are fighting hard for limited deal opportunities they have in the
industry. It shows that Brandon Capital Partners can do better than it does currently in terms of
Early Stage
and Late
Stage
Pension funds,
Corporations,
Endowments
IPO, Promoter
buyback, M&A,
and sale to other
strategic
investors
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13
BRANDON CAPITAL PARTNERS
making relevant offers to its clients. Indeed, it is required considering the level of challenge that
is there in winning a project. The offers can be made more relevant if Brandon Capital Partners
can sense the need to improve the offers. Management accounting information gives a clear
picture of how the firm is financially performing (Gerasymenko, De Clercq and Sapienza 2015).
If the performance graph has fallen in recent times this will mean either the industry pressure has
increased or else the competency is mismanaged.
However, the entire process of funding follows a certain process. After when it receives
the funds from banks, funds and corporations it evaluates the deal to identify the opportunities.
The moment it has sufficient trust in the venture it invests the capital. Besides, it governs the
business with the necessary guidelines for profitable growth. It follows generating liquidate
through IPO and various other modes. Lastly, it distributes the returns to investors while keeping
agood amount of sum with it as the commission. This is also the last stage of the entire value
chain (Panda and Dash 2016).
4.3Performance Measure using balanced Scorecard
BRANDON CAPITAL PARTNERS
making relevant offers to its clients. Indeed, it is required considering the level of challenge that
is there in winning a project. The offers can be made more relevant if Brandon Capital Partners
can sense the need to improve the offers. Management accounting information gives a clear
picture of how the firm is financially performing (Gerasymenko, De Clercq and Sapienza 2015).
If the performance graph has fallen in recent times this will mean either the industry pressure has
increased or else the competency is mismanaged.
However, the entire process of funding follows a certain process. After when it receives
the funds from banks, funds and corporations it evaluates the deal to identify the opportunities.
The moment it has sufficient trust in the venture it invests the capital. Besides, it governs the
business with the necessary guidelines for profitable growth. It follows generating liquidate
through IPO and various other modes. Lastly, it distributes the returns to investors while keeping
agood amount of sum with it as the commission. This is also the last stage of the entire value
chain (Panda and Dash 2016).
4.3Performance Measure using balanced Scorecard
Financial perspective
- Total no. of deals
- Total fund in Australian dollars
- Total commissions received
- Total commission/Total income * 100%
Customer perspective
- The number of new ventures either received on their own or recommended by old ventures
- Completed deal/Total number of deals * 100%
Internal business processes
- Total entrepreneurial ventures/Total potential ventures *100
Learning and growth
- number of trainees each month
- Total number of new deals recieved
Brandon Capital Partners
14
BRANDON CAPITAL PARTNERS
Figure 5: Balanced Scorecard
(Source: created by author)
Financial Perspective
Brandon Capital Partners pay attention to three distinct terms. One of these is the total number of
deals. Understandably, the number of deals will indicate whether the industry trend is positively
moving. With growing numbers for deals, the deal grabbing probability will also increase for
Brandon Capital Partners. It also keeps track of the total funds received. This calculation is done
in terms of Australian dollars. By gaining an understanding of the fund it identifies its funding
capacity. With this knowledge, it has it can accordingly look to new deals. Lastly, the monetary
benefits of each deal are calculated using a formula already highlighted in the financial
perspective section of the Company’s balanced scorecard. The formula indicates that Brandon
Capital Partners does earn a portion of the total income made from a deal. This earning is utilized
in different operations’ needs. The needs may include but are not limited to such as
infrastructural development works, wages distribution, research and development (R&D)
activities, and development and implementation of innovative ideas (Salomon 2016).
- Total no. of deals
- Total fund in Australian dollars
- Total commissions received
- Total commission/Total income * 100%
Customer perspective
- The number of new ventures either received on their own or recommended by old ventures
- Completed deal/Total number of deals * 100%
Internal business processes
- Total entrepreneurial ventures/Total potential ventures *100
Learning and growth
- number of trainees each month
- Total number of new deals recieved
Brandon Capital Partners
14
BRANDON CAPITAL PARTNERS
Figure 5: Balanced Scorecard
(Source: created by author)
Financial Perspective
Brandon Capital Partners pay attention to three distinct terms. One of these is the total number of
deals. Understandably, the number of deals will indicate whether the industry trend is positively
moving. With growing numbers for deals, the deal grabbing probability will also increase for
Brandon Capital Partners. It also keeps track of the total funds received. This calculation is done
in terms of Australian dollars. By gaining an understanding of the fund it identifies its funding
capacity. With this knowledge, it has it can accordingly look to new deals. Lastly, the monetary
benefits of each deal are calculated using a formula already highlighted in the financial
perspective section of the Company’s balanced scorecard. The formula indicates that Brandon
Capital Partners does earn a portion of the total income made from a deal. This earning is utilized
in different operations’ needs. The needs may include but are not limited to such as
infrastructural development works, wages distribution, research and development (R&D)
activities, and development and implementation of innovative ideas (Salomon 2016).
15
BRANDON CAPITAL PARTNERS
Customer Perspective
From the customer perspective whether Brandon Capital Partners is progressing is analyzed in
two distinct ways. Firstly, it takes a good measure of deals received. The deals received may be
due to the fresh advertisement of the project or received on the word-of-mouth publicity of the
existing clients. Both of these things are important for Brandon Capital Partners. The numbers of
deals have reduced this year leading top venture capital firms to fight for the deals (Bocken
2015). Hence, Brandon Capital Partners would look to possible ways of receiving the deals. To
them, it happens in two ways as highlighted in the balanced scorecard chart for the company.
Now, the word-of-mouth publicity is subjected to how efficiently Brandon Capital Partners has
handled its last deals. The larger the number of satisfactory deals, the bigger will be the
publicity.
Secondly, Brandon Capital Partners does invest many in its different operations' processes to
remain attractive for entrepreneurs. It includes but not limited to training its people,
spendingonR&D capability, doing innovation and improving its accounting information
management capability. By limiting the number of areas to look for Brandon Capital Partners
does work on its capability to provide the best service experience to its clients (Alperovych,
Hübner and Lobet 2015). The fact also indicates that there will be a constant need for
management inputs in its different management activities. It is to become more competitive with
its unparalleled innovation capability and others.
Internal Business Processes
Internal business processes express the activities performed internally to achieve the better
conversion of deals. The entrepreneurial ventures have ample options for the venture capitalists
in Australia. They can choose the one which matches their requirement of such firms. This
indicates that not each potential deal will be converted into final deals. Indeed, Brandon Capital
Partners can lose a few deals to its competitors (Hain, Johan and Wang 2016). Hence, Brandon
Capital Partners measures its business efficiency in many terms that also includes analyzing the
numbers for potential deals that were converted into actual deals. This also suggests a need to
constantly innovate to help its people become more agile, the process becomes more streamlined
and others.
BRANDON CAPITAL PARTNERS
Customer Perspective
From the customer perspective whether Brandon Capital Partners is progressing is analyzed in
two distinct ways. Firstly, it takes a good measure of deals received. The deals received may be
due to the fresh advertisement of the project or received on the word-of-mouth publicity of the
existing clients. Both of these things are important for Brandon Capital Partners. The numbers of
deals have reduced this year leading top venture capital firms to fight for the deals (Bocken
2015). Hence, Brandon Capital Partners would look to possible ways of receiving the deals. To
them, it happens in two ways as highlighted in the balanced scorecard chart for the company.
Now, the word-of-mouth publicity is subjected to how efficiently Brandon Capital Partners has
handled its last deals. The larger the number of satisfactory deals, the bigger will be the
publicity.
Secondly, Brandon Capital Partners does invest many in its different operations' processes to
remain attractive for entrepreneurs. It includes but not limited to training its people,
spendingonR&D capability, doing innovation and improving its accounting information
management capability. By limiting the number of areas to look for Brandon Capital Partners
does work on its capability to provide the best service experience to its clients (Alperovych,
Hübner and Lobet 2015). The fact also indicates that there will be a constant need for
management inputs in its different management activities. It is to become more competitive with
its unparalleled innovation capability and others.
Internal Business Processes
Internal business processes express the activities performed internally to achieve the better
conversion of deals. The entrepreneurial ventures have ample options for the venture capitalists
in Australia. They can choose the one which matches their requirement of such firms. This
indicates that not each potential deal will be converted into final deals. Indeed, Brandon Capital
Partners can lose a few deals to its competitors (Hain, Johan and Wang 2016). Hence, Brandon
Capital Partners measures its business efficiency in many terms that also includes analyzing the
numbers for potential deals that were converted into actual deals. This also suggests a need to
constantly innovate to help its people become more agile, the process becomes more streamlined
and others.
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BRANDON CAPITAL PARTNERS
Learning and Growth
Whether Brandon Capital Partners is on a learning track are measured under two distinct
variables. The total number of people attending training is one of these variables. Training as
opined by does provide an opportunity for people to improve their professional skills (Siddiqui,
Marinova and Hossain 2016). Hence, it is understandable why Brandon Capital Partners is more
concerned with the training. As already found in this study the competition has grown intensely
in recent times for venture capitalists. Major and renowned Australian venture capitalists are
fighting on a few deals. Therefore, these firms need to follow a learning curve. A learning curve
will boost their efficiency to grab more deals and outperform the competitors. Brandon Capital
Partners does measure the efficiency of its learning and growth programs in terms of the number
of deals they receive every year. Reduced efficiency in grabbing new deals will indicate a few
things about learning and growth. These are (Siddiqui, Marinova and Hossain 2016):
● Maybe the number of training programs have reduced;
● Maybe the number of participants in such programs have decreased;
● Maybe the occurrence of such programs have reduced;
● Maybe the spending capacity was affected by the falling performance
4.3Product/service costing
Brandon Capital Partners follows a price competitive model. It pays back to investors their
invested amount along with a portion of the commissions gained from the deal. It keeps with it a
significant portion of the commission gained after following an exit from the deal (Hochberg,
Lindsey and Westerfield 2015). Brandon Capital Partners follows a conceptual framework to
identify the cost of doing a deal.
BRANDON CAPITAL PARTNERS
Learning and Growth
Whether Brandon Capital Partners is on a learning track are measured under two distinct
variables. The total number of people attending training is one of these variables. Training as
opined by does provide an opportunity for people to improve their professional skills (Siddiqui,
Marinova and Hossain 2016). Hence, it is understandable why Brandon Capital Partners is more
concerned with the training. As already found in this study the competition has grown intensely
in recent times for venture capitalists. Major and renowned Australian venture capitalists are
fighting on a few deals. Therefore, these firms need to follow a learning curve. A learning curve
will boost their efficiency to grab more deals and outperform the competitors. Brandon Capital
Partners does measure the efficiency of its learning and growth programs in terms of the number
of deals they receive every year. Reduced efficiency in grabbing new deals will indicate a few
things about learning and growth. These are (Siddiqui, Marinova and Hossain 2016):
● Maybe the number of training programs have reduced;
● Maybe the number of participants in such programs have decreased;
● Maybe the occurrence of such programs have reduced;
● Maybe the spending capacity was affected by the falling performance
4.3Product/service costing
Brandon Capital Partners follows a price competitive model. It pays back to investors their
invested amount along with a portion of the commissions gained from the deal. It keeps with it a
significant portion of the commission gained after following an exit from the deal (Hochberg,
Lindsey and Westerfield 2015). Brandon Capital Partners follows a conceptual framework to
identify the cost of doing a deal.
17
BRANDON CAPITAL PARTNERS
COST MEASUREMENT
Direct Cost (DC):
Start-up fund Calculation of funds in Australian dollars
Management fee Management fee makes up 2.2% of the total
fund every year
Carried interest The rate of interests carried in the fund is
equal to 22%
Other expenses
Indirect Cost (IC):
Size Sensitivity analysis
Market structures
Uncertainty and Risk (UR) Loss is estimated at 25%, 50%, 75% or 100%
Other Indirect Cost (OIC):
Costs involved in file preparation Qualitative analysis
Costs involved in searching for investors
Costs involved in due diligence procedure
Costs in protecting intellectual property cost
Reorganization cost
Negotiation involved in financing cost
Table 1: Conceptual Framework to list Costs and Benefits
(Source: Galloway et al. 2017)
The above table shows how Brandon Capital Partners uses a framework to keep track of all the
expenses. The table suggests that qualitative analysis is involved in measuring the other indirect
cost (OIC) involved in a deal. This suggests the need to have a very good setup for accounting
information management. Being one of the leading venture capitalists in Australia Brandon
BRANDON CAPITAL PARTNERS
COST MEASUREMENT
Direct Cost (DC):
Start-up fund Calculation of funds in Australian dollars
Management fee Management fee makes up 2.2% of the total
fund every year
Carried interest The rate of interests carried in the fund is
equal to 22%
Other expenses
Indirect Cost (IC):
Size Sensitivity analysis
Market structures
Uncertainty and Risk (UR) Loss is estimated at 25%, 50%, 75% or 100%
Other Indirect Cost (OIC):
Costs involved in file preparation Qualitative analysis
Costs involved in searching for investors
Costs involved in due diligence procedure
Costs in protecting intellectual property cost
Reorganization cost
Negotiation involved in financing cost
Table 1: Conceptual Framework to list Costs and Benefits
(Source: Galloway et al. 2017)
The above table shows how Brandon Capital Partners uses a framework to keep track of all the
expenses. The table suggests that qualitative analysis is involved in measuring the other indirect
cost (OIC) involved in a deal. This suggests the need to have a very good setup for accounting
information management. Being one of the leading venture capitalists in Australia Brandon
18
BRANDON CAPITAL PARTNERS
Capital Partners must manage to use technologies helpful in accessing such data in real-time. If
this could happen those who are a part of the Brandon Capital Partners will be able to access
these data in real-time. Hence, their capacity for diverse operations will also grow. This consists
of doing advertisement to attract deals, interacting with clients to explain the uniqueness
Brandon Capital Partners offers to its clients and so forth (Panda and Dash 2016).
4.4Cost-Volume-Profit Analysis
Brandon Capital Partners uses cost-volume-profit analysis to be able to predict the break-even
point and to predict the numbers for the deal to be achieved in the next year to gain target profit
(Siddiqui, Marinova and Hossain 2016). Before proceeding to how Brandon Capital Partners
does the cost-volume-profit analysis it is primarily important to identify the areas incurring the
fixed costs as well as variable costs. This is shown below as highlighted in the table:
Fixed Costs Variable Costs
Carried interest Start-up fund
Costs of file preparation Management fee
Costs in searching for investors Other expenses
Costs involved in due diligence procedure Size
Costs for providing security assistance on
intellectual properties
Market structures
Uncertainty and Risk (UR)
Negotiation in financing cost
Reorganization cost
Table 2: Fixed and Variable Costs
(Source: created by author)
The table above indicates the areas, which incur the costs for the Brandon Capital Partners. The
areas are divided into two distinct categories. These are Fixed Costs and Variable Costs.
BRANDON CAPITAL PARTNERS
Capital Partners must manage to use technologies helpful in accessing such data in real-time. If
this could happen those who are a part of the Brandon Capital Partners will be able to access
these data in real-time. Hence, their capacity for diverse operations will also grow. This consists
of doing advertisement to attract deals, interacting with clients to explain the uniqueness
Brandon Capital Partners offers to its clients and so forth (Panda and Dash 2016).
4.4Cost-Volume-Profit Analysis
Brandon Capital Partners uses cost-volume-profit analysis to be able to predict the break-even
point and to predict the numbers for the deal to be achieved in the next year to gain target profit
(Siddiqui, Marinova and Hossain 2016). Before proceeding to how Brandon Capital Partners
does the cost-volume-profit analysis it is primarily important to identify the areas incurring the
fixed costs as well as variable costs. This is shown below as highlighted in the table:
Fixed Costs Variable Costs
Carried interest Start-up fund
Costs of file preparation Management fee
Costs in searching for investors Other expenses
Costs involved in due diligence procedure Size
Costs for providing security assistance on
intellectual properties
Market structures
Uncertainty and Risk (UR)
Negotiation in financing cost
Reorganization cost
Table 2: Fixed and Variable Costs
(Source: created by author)
The table above indicates the areas, which incur the costs for the Brandon Capital Partners. The
areas are divided into two distinct categories. These are Fixed Costs and Variable Costs.
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19
BRANDON CAPITAL PARTNERS
Brandon Capital Partners does follow a systematic way to conduct the cost-volume-benefit
analysis of the total deals completed in a year. For being able to proceed, Brandon Capital
Partners does first calculate the total commission is earned from doing all the deals in a year. It
then multiplies the commissions thus gained with the addition of total costs it incurred for
handling all the deals in a year and the total target profit to be achieved. The next step it follows
is identifying the average commission it gains and costs it incurs on a yearly basis. This means
the average commissions gained from doing all the deals in recent times. The average variable
cost indicates the total variable cost incurred in handling the deals in recent times. All these
calculations can be expressed easily through a formula shown below:
Percentage of Total Commissions for Deals handled in a year * (Total Fixed Cost + Total Target
Profit) / Average Commission in recent times - Average Variable Costs incurred in recent times
4.5Budgeting
The budget process such as the one followed at the Brandon Capital Partners is very extensive.
The concerned departments take account of the various related terms to predict the actual budget
for years to come. There is a need to adjust the budget to avoid a budget deficit. To avoid any
errors while doing the budgeting the concerned department conducts a thorough assessment of
the budget for the past few years. It gives them an idea about the degree to which the budget has
met with errors (Ewens, Nanda and Rhodes-Kropf 2018).
To do so the concerned team at Brandon Capital Partners does a variance analysis to find the
differences between the budget and the actual results. This proves helpful in preparing a more
accurate budget for the target year (Ewens, Nanda and Rhodes-Kropf 2018). It conducts variance
analysis for each of the department involved in handling a deal. This means there should be
effective communication and coordination between each one of these departments or else the
budgeting process will hamper. This may eventually create problems at the later stage of a deal
about the deal management. Effective communication is not just important for preparing an
accurate budget but also in letting employees know their deal-specific roles and responsibilities
(Cox Pahnke et al. 2015). Budgeting is also needed to control the daily operating expenses. It is
BRANDON CAPITAL PARTNERS
Brandon Capital Partners does follow a systematic way to conduct the cost-volume-benefit
analysis of the total deals completed in a year. For being able to proceed, Brandon Capital
Partners does first calculate the total commission is earned from doing all the deals in a year. It
then multiplies the commissions thus gained with the addition of total costs it incurred for
handling all the deals in a year and the total target profit to be achieved. The next step it follows
is identifying the average commission it gains and costs it incurs on a yearly basis. This means
the average commissions gained from doing all the deals in recent times. The average variable
cost indicates the total variable cost incurred in handling the deals in recent times. All these
calculations can be expressed easily through a formula shown below:
Percentage of Total Commissions for Deals handled in a year * (Total Fixed Cost + Total Target
Profit) / Average Commission in recent times - Average Variable Costs incurred in recent times
4.5Budgeting
The budget process such as the one followed at the Brandon Capital Partners is very extensive.
The concerned departments take account of the various related terms to predict the actual budget
for years to come. There is a need to adjust the budget to avoid a budget deficit. To avoid any
errors while doing the budgeting the concerned department conducts a thorough assessment of
the budget for the past few years. It gives them an idea about the degree to which the budget has
met with errors (Ewens, Nanda and Rhodes-Kropf 2018).
To do so the concerned team at Brandon Capital Partners does a variance analysis to find the
differences between the budget and the actual results. This proves helpful in preparing a more
accurate budget for the target year (Ewens, Nanda and Rhodes-Kropf 2018). It conducts variance
analysis for each of the department involved in handling a deal. This means there should be
effective communication and coordination between each one of these departments or else the
budgeting process will hamper. This may eventually create problems at the later stage of a deal
about the deal management. Effective communication is not just important for preparing an
accurate budget but also in letting employees know their deal-specific roles and responsibilities
(Cox Pahnke et al. 2015). Budgeting is also needed to control the daily operating expenses. It is
20
BRANDON CAPITAL PARTNERS
needed to ensure that the business race to sustainability instead of being affected by the
mismanagement of budget (Cox Pahnke et al. 2015).
Budget is helpful to overcome the cost-management challenges faced previously in
managing a deal and also in securing sustainable progress with deals to be done in the future.
The budget gives a good indication of the break-even point and therefore, assist in adjusting the
profit plan (Ewens, Nanda and Rhodes-Kropf 2018).
4.6Information System
Brandon Capital Partners follows two distinct techniques to manage accounting and other pieces
of information. These two techniques are:
⮚ Database
In the database, it keeps information regarding everything that is a part of the operations. As
stated earlier, Brandon Capital Partners gives venture capital services only to healthcare sectors
such as Biotechnology and Pharma Companies. It keeps its client base limited to these
companies only. Hence, in the database, it stores data related to the selected healthcare domain
(Brandoncapital.com.au 2019). The data stored in this way is retrieved and used regularly to gain
knowledge on the information and to remain updated with the latest industry-specific news. The
employees use it to enhance their knowledge of the subject. This helps them to develop relevant
skills to know what and how to be reported to the managers. The database along with carrying a
subject-based knowledge is also used to store information related to a deal.
⮚ CRM
Customer relationship management (CRM) is used to store data related to the client. It may have
information on how a particular client has tried to negotiate a deal and the countering activities
of the person in concern. Such data can be useful for training employees in new firms. These
employees have a better understanding of how deals happen as they see it first hand. The pieces
of data stored in the CRM can be used by employees in real-time. They can use it to report any
BRANDON CAPITAL PARTNERS
needed to ensure that the business race to sustainability instead of being affected by the
mismanagement of budget (Cox Pahnke et al. 2015).
Budget is helpful to overcome the cost-management challenges faced previously in
managing a deal and also in securing sustainable progress with deals to be done in the future.
The budget gives a good indication of the break-even point and therefore, assist in adjusting the
profit plan (Ewens, Nanda and Rhodes-Kropf 2018).
4.6Information System
Brandon Capital Partners follows two distinct techniques to manage accounting and other pieces
of information. These two techniques are:
⮚ Database
In the database, it keeps information regarding everything that is a part of the operations. As
stated earlier, Brandon Capital Partners gives venture capital services only to healthcare sectors
such as Biotechnology and Pharma Companies. It keeps its client base limited to these
companies only. Hence, in the database, it stores data related to the selected healthcare domain
(Brandoncapital.com.au 2019). The data stored in this way is retrieved and used regularly to gain
knowledge on the information and to remain updated with the latest industry-specific news. The
employees use it to enhance their knowledge of the subject. This helps them to develop relevant
skills to know what and how to be reported to the managers. The database along with carrying a
subject-based knowledge is also used to store information related to a deal.
⮚ CRM
Customer relationship management (CRM) is used to store data related to the client. It may have
information on how a particular client has tried to negotiate a deal and the countering activities
of the person in concern. Such data can be useful for training employees in new firms. These
employees have a better understanding of how deals happen as they see it first hand. The pieces
of data stored in the CRM can be used by employees in real-time. They can use it to report any
21
BRANDON CAPITAL PARTNERS
updates to the managers and be equipped with the clients' demands (Brandoncapital.com.au
2019). There are few areas of improvements in the Database applicable at Brandon Capital
Partners. The managers at Brandon Capital Partners use the database to manage their process-
related requirements. However, they can use it for more than just serving their process-related
needs. The Database can also be used to publish monthly or yearly wise reports on the deals. If
this could happen a comparison between the potential and the total fetched deals will become
easier.
4.7Sustainability
Brandon Capital Partners is intended at investing in process, technology and strategy to
keep its end consumers of the new firms healthy. It invests in the consumer-facing and
technology-enabled process to help its end customers and to ensure that the overall environment
stays healthy. The selection of clients also indicates the company’s concerns for its end
customers and the environment where it operates. It provides capital to ventures that are related
to Biotechnology and Pharma. Hence, the concerns are more attached to life science
(Brandoncapital.com.au 2019). Brandon Capital Partners takes care of its ventures and end
customers using suitable techniques. One of these techniques is offering training to employees of
its new firms. Employees with less competitive skills will have tough days surviving with the
venture capital industry. Every new venture brings a new set of challenges. If there is no
adequate guidance on how to cope with these challenges people will start doubting their
feasibility level with the industry (Ragozzino and Blevins 2016).
Conclusion
Therefore, this study helped know where Brandon Capital Partners have been doing well
since the past few years and the areas that have some concerns about it. There is a high risk
involved in each deal. It is necessary to have key performance indicators (KPIs) to measure each
crucial business activity. The activities that need to be assigned with KPIs include talent
management, accounting information management and the customer experience. As the industry
gets fiercely competitive this will become a necessity to adopt a strategy to control these areas.
Recommendation
BRANDON CAPITAL PARTNERS
updates to the managers and be equipped with the clients' demands (Brandoncapital.com.au
2019). There are few areas of improvements in the Database applicable at Brandon Capital
Partners. The managers at Brandon Capital Partners use the database to manage their process-
related requirements. However, they can use it for more than just serving their process-related
needs. The Database can also be used to publish monthly or yearly wise reports on the deals. If
this could happen a comparison between the potential and the total fetched deals will become
easier.
4.7Sustainability
Brandon Capital Partners is intended at investing in process, technology and strategy to
keep its end consumers of the new firms healthy. It invests in the consumer-facing and
technology-enabled process to help its end customers and to ensure that the overall environment
stays healthy. The selection of clients also indicates the company’s concerns for its end
customers and the environment where it operates. It provides capital to ventures that are related
to Biotechnology and Pharma. Hence, the concerns are more attached to life science
(Brandoncapital.com.au 2019). Brandon Capital Partners takes care of its ventures and end
customers using suitable techniques. One of these techniques is offering training to employees of
its new firms. Employees with less competitive skills will have tough days surviving with the
venture capital industry. Every new venture brings a new set of challenges. If there is no
adequate guidance on how to cope with these challenges people will start doubting their
feasibility level with the industry (Ragozzino and Blevins 2016).
Conclusion
Therefore, this study helped know where Brandon Capital Partners have been doing well
since the past few years and the areas that have some concerns about it. There is a high risk
involved in each deal. It is necessary to have key performance indicators (KPIs) to measure each
crucial business activity. The activities that need to be assigned with KPIs include talent
management, accounting information management and the customer experience. As the industry
gets fiercely competitive this will become a necessity to adopt a strategy to control these areas.
Recommendation
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BRANDON CAPITAL PARTNERS
⮚ Recommendation 1: Talent Management
At the most fundamental level, the nations' education system should help develop skilled and
competitive talent for industries such as the venture capital industry. The recruiters at the
Brandon Capital Partners should be careful while recruiting people. They should be people only
who possess relevant skills and the desire to grow with this industry. The existing people should
be given regular training on the process and any updates related to the industry.
⮚ Recommendation 2: Key Performance Indicators (KPIs) to Analyze the Employees’
Performance
There should be clear key performance indicators (KPIs) for measuring the performance of
employees. It is worth noting that wages make up the biggest part of the cost structure. Brandon
Capital Partners should be able to fetch the benefits from the expenses. KPIs will help Brandon
Capital Partners to identify firms that are most profitable as well as less profitable for the
company.
⮚ Recommendation 3: Improved Utilization of CRM in Managing the Customer Experience
There are very few companies, which utilize the huge pieces of data in real-time. They lack an
understanding of the set of data to be used as well as to avoid. By using appropriate “Business
Analytics” tool Brandon Capital Partners can make data-driven decisions. They can look for
improving their strategies aligned with customer experience. The firm can actively look for ways
and strategies to turn these pieces of data into its level of competency.
BRANDON CAPITAL PARTNERS
⮚ Recommendation 1: Talent Management
At the most fundamental level, the nations' education system should help develop skilled and
competitive talent for industries such as the venture capital industry. The recruiters at the
Brandon Capital Partners should be careful while recruiting people. They should be people only
who possess relevant skills and the desire to grow with this industry. The existing people should
be given regular training on the process and any updates related to the industry.
⮚ Recommendation 2: Key Performance Indicators (KPIs) to Analyze the Employees’
Performance
There should be clear key performance indicators (KPIs) for measuring the performance of
employees. It is worth noting that wages make up the biggest part of the cost structure. Brandon
Capital Partners should be able to fetch the benefits from the expenses. KPIs will help Brandon
Capital Partners to identify firms that are most profitable as well as less profitable for the
company.
⮚ Recommendation 3: Improved Utilization of CRM in Managing the Customer Experience
There are very few companies, which utilize the huge pieces of data in real-time. They lack an
understanding of the set of data to be used as well as to avoid. By using appropriate “Business
Analytics” tool Brandon Capital Partners can make data-driven decisions. They can look for
improving their strategies aligned with customer experience. The firm can actively look for ways
and strategies to turn these pieces of data into its level of competency.
23
BRANDON CAPITAL PARTNERS
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capital backing affect a firm's efficiency? Evidence from Belgium. Journal of Business
Venturing, 30(4), pp.508-525.
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Bocken, N.M., 2015. Sustainable venture capital–a catalyst for sustainable start-up success?.
Journal of Cleaner Production, 108, pp.647-658.
Bottazzi, L., Da Rin, M. and Hellmann, T., 2016. The importance of trust for investment:
Evidence from venture capital. The Review of Financial Studies, 29(9), pp.2283-2318.
Brandoncapital.com.au 2019. Seed and Venture Capital Investments - Brandon Capital Partners.
[online] Brandoncapital.com.au. Available at: http://www.brandoncapital.com.au/ [Accessed 30
Sep. 2019].
Burchardt, J., Hommel, U., Kamuriwo, D.S. and Billitteri, C., 2016. Venture capital contracting
in theory and practice: implications for entrepreneurship research. Entrepreneurship Theory and
Practice, 40(1), pp.25-48.
Colombo, M.G., Cumming, D.J. and Vismara, S., 2016. Governmental venture capital for
innovative young firms. The Journal of Technology Transfer, 41(1), pp.10-24.
Cox Pahnke, E., McDonald, R., Wang, D. and Hallen, B., 2015. Exposed: Venture capital,
competitor ties, and entrepreneurial innovation. Academy of Management Journal, 58(5),
pp.1334-1360.
Drover, W., Busenitz, L., Matusik, S., Townsend, D., Anglin, A. and Dushnitsky, G., 2017. A
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Panda, S. and Dash, S., 2016. Exploring the venture capitalist–entrepreneur relationship:
evidence from India. Journal of Small Business and Enterprise Development, 23(1), pp.64-89.
Park, S., LiPuma, J.A. and Prange, C., 2015. Venture capitalist and entrepreneur knowledge of
new venture internationalization: A review of knowledge components. International Small
Business Journal, 33(8), pp.901-928.
Pollock, T.G., Lee, P.M., Jin, K. and Lashley, K., 2015. (Un) tangled: Exploring the asymmetric
coevolution of new venture capital firms’ reputation and status. Administrative Science
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59(1), pp.277-301.
BRANDON CAPITAL PARTNERS
Panda, S. and Dash, S., 2016. Exploring the venture capitalist–entrepreneur relationship:
evidence from India. Journal of Small Business and Enterprise Development, 23(1), pp.64-89.
Park, S., LiPuma, J.A. and Prange, C., 2015. Venture capitalist and entrepreneur knowledge of
new venture internationalization: A review of knowledge components. International Small
Business Journal, 33(8), pp.901-928.
Pollock, T.G., Lee, P.M., Jin, K. and Lashley, K., 2015. (Un) tangled: Exploring the asymmetric
coevolution of new venture capital firms’ reputation and status. Administrative Science
Quarterly, 60(3), pp.482-517.
Ragozzino, R. and Blevins, D.P., 2016. Venture-Backed Firms: How Does Venture Capital
Involvement Affect Their Likelihood of Going Public or Being Acquired?. Entrepreneurship
Theory and Practice, 40(5), pp.991-1016.
Salomon, V., 2016. Emergent models of financial intermediation for innovative companies: from
venture capital to crowdinvesting platforms in Switzerland. Venture Capital, 18(1), pp.21-41.
Siddiqui, A., Marinova, D. and Hossain, A., 2016. Venture Capital Networks in Australia:
Emerging Structure and Behavioral Implications. J. Mgmt. & Sustainability, 6, p.21.
Wuebker, R., Hampl, N. and Wuestenhagen, R., 2015. The strength of strong ties in an emerging
industry: Experimental evidence of the effects of status hierarchies and personal ties in venture
capitalist decision making. Strategic Entrepreneurship Journal, 9(2), pp.167-187.
Zhelyazkov, P.I. and Gulati, R., 2016. After the break-up: The relational and reputational
consequences of withdrawals from venture capital syndicates. Academy of Management Journal,
59(1), pp.277-301.
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