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CHAPTER TWO METHODOLOGY
Approach
2.1 Below, we summarise the overall approach that was adopted to carrying out the assignment.
Figure 2.1 - Overview of Methodological Approach/Work Plan
2.2 The fieldwork part of this evaluation included:
- An analysis of data on performance at the fund level
- An analysis of investments made by the various VCLFs
- Surveys of companies to add to the data held by fund managers and data contained in monitoring reports and evaluations of the various funds
- Interviews with the respective fund managers, the Scottish Government and local authorities/agencies and with other interested parties and stakeholders including those in the financial sector, and with some investee companies.
2.3 We carried out surveys at a company level for a number of the VCLFs. The table below shows the methodology applied for each survey (these differed slightly from fund to fund) and the response rate.
Table 2.1 - Survey Results
Fund | Approach | Companies surveyed | Responses | % response |
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SCF | Survey sent by CSES by email to all live investees, with response to CSES by completion of on line questionnaire, or by email | 86 | 40 | 46% |
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WSLF | Survey sent by fund manager with target of 100 usable responses to be returned to him | n/a | 59 | n/a |
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PSYBT | Survey sent by fund manager, with paper responses to CSES | 76 | 15 | 20% |
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Sigma Innovation | Survey sent by fund manager, with paper responses to CSES | 11 | 5 | 45% |
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2.4 In addition, we surveyed Micro Credit East investments (there were only 2, both of which responded) and the remaining Sigma and Genomia investments (the number is small). It had been planned to carry out a survey of rejected applicants but this was only possible in respect of the Sigma funds (two responses were obtained). Other funds had recently been subject to evaluations which provided survey data. In the case of the WSLF, our survey complemented a large earlier evaluation survey which also provided additional data.
Interview Programme
2.5 The Phase 2 interview programme was carried out on a face-to-face basis supported by telephone contacts. Annex J lists the interviews which were carried out with fund managers, local authorities and agencies and officials from the Scottish Government. We also included 10 SCF investment partners in the scope of our interviews, together with 5 interviews with investee companies.
Evaluation Framework
2.6 The evaluation questions to be considered were defined using the framework outlined below. The section of the report containing the evaluation conclusions is also structured on this basis.
Figure 2.2 - Evaluation framework
Overall Framework - Evaluation of Venture Capital Funds |
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Relevance - the extent to which the fund objectives are relevant to economic development in Scotland given policy priorities and the key issues relating to the prevailing economic and financial environment generally. Economy and Efficiency - the costs of managing, administering and operating the funds and whether the resources used to operate the funds could be used more efficiently to produce similar results at lower costs. Effectiveness - the extent to which the funds are achieving their targets. There are a number of critical factors in this respect - the quality and quantity of resources, the extent to which outcomes are relevant (see above), how effectively the funds meet their objectives. Coherence and synergies - from an internal perspective, how funds relate to other public sector and private initiatives. Externally, the question is the extent to which there is overlap between funds, or the degree to which particular markets are not met by them. Impacts and added value - what effect the funds have overall on the Scottish economy. Sustainability - whether the funds are likely to become self-sustaining in the longer term without the need for continuing public support, or with lower amounts of public support. Given the relatively early stage of development of some funds it may be difficult to arrive at conclusions in this area at the current stage. |
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