eprintid: 263 rev_number: 10 eprint_status: archive userid: 30 dir: disk0/00/00/02/63 datestamp: 2019-10-23 11:03:50 lastmod: 2019-10-23 11:03:50 status_changed: 2019-10-23 11:03:50 type: thesis metadata_visibility: show creators_name: Oluwagbemiga Shokunbi, Samuel corp_creators: Griffith College corp_creators: Supervisor: George E. Iatridis title: Investment Risks: An Analytical Study of the Risk Reduction Strategies Used in Deciding Investments in Start-Ups. ispublished: unpub divisions: MSCAF full_text_status: public keywords: Start-ups, Risk reduction strategies abstract: This paper attempts to provide an insight to the decision-making process and methods of evaluations when making investment decision in relation to start-ups. It examined the risk considerations and strategies used by fund managers, investment analysts and VCs to minimise the risks. With start-ups on the rise and growing, they make their additions to the world’s economy. It is therefore important to know the risks they face; both for survival and when choosing to invest in them. With the likes of Apple, Facebook, and so on having sprung up as start-ups, it is of note that start-ups cannot be overlooked. The research aimed at answering questions that were focused on the risks start-ups faced both for survival and investing in them, the strategies used to minimise these risks and determine if there was a relationship between the risks and returns. The research was conducted using interviews and the valuation of a start-up recently listed on the London Stock Exchange via an Initial Public Offering. Although the results show that there were indeed a lot of risks faced by start-ups for survival and investments; both of which were centred around regulations, political risk and loss of investments itself. It also found that the risk reduction strategies used were mainly diversification, reduced exposure and having oversight or protected interest in the business. However, the relationship between the risks and returns could not be proven due to limitations encountered. At the end however, it was also discovered that there were certain emotional biases when it came to investments which this research has identified as a possible option for further research. date: 2019 date_type: completed institution: Griffith College department: Graduate Business School thesis_type: masters referencetext: Agarwal, V., Boyson, N. M. and Naik, N. Y. (2009) ‘Hedge Funds for Retail Investors? An Examination of Hedged Mutual Funds’, Journal of Financial & Quantitative Analysis, 44(2), pp. 273–305. doi: 10.1017/S0022109009090188. Al-Saadi, H. (2014) Demystifying Ontology and Epistemology in Research Methods. 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