The research is geared towards understanding the development cycle of technology based
companies especially in the small and medium sized sector and refer to a model to help private
investors in Malaysia evaluate business proposals to make funding decisions. There is always
confusión when technology entrepreneurs want to evaluate the right investors to approach for
fund, becuase not all specialize in funding start-ups and risky ventures. Indept investigation of
past research indicates that not much have been written on venture capital financing of small and
medium sized companies in Malaysia, and this work aims to shed more light and to add to
literature on venture capital. Past research have failed to recommend appropriate and a simplified
framework for growth firms.However, there is need to understand the relationship between
investment evaluation criteria and the development cycle.The research focusses on secondary
sources available from literatures on venture capital activities. Findings from this research will
be of interest to investors, investees, academics and government
