Venture capital (VC) as a method of funding technology based firms (TBFs) is a concept which emerged from the United States
of America since over 30 years and has spread tremendously across the world. This concept has gained considerable awareness
in Malaysia since the early 1990’s when goverment established the first venture capital company to promote and accelerate the
development of the venture capital concept and also encourage the commercialization of technology based products through the
management of the technology transfer funds. Due to the difficulty technology based firms owners go through in the process of
growing their innovations particularly during the initial phase of growth of their businesses their is need to encourage financial
managers to take up equity stakes and help nurture technology based firms to maturity. As a result of the perception in some
quarters that their is a dearth of investments in the Malaysian VC industry which they opined has contributed to the slow pace of
growth recorded in the industry despite huge government financial support. This study adopts a grounded theory approach
(within-method triangulation) to collect data from 34 respondents in the industry. The model proposed in this study will benefit
stakeholders to evaluate technology based firms
