Resumen
Independent venture capital firms require actionable economic best practice strategies to reduce uncertainty when investing in biofuel firms. Biofuels derived from plant oils are a primary source of renewable fuel energy replacing petrol diesel. Investing in biofuels is fraught with high capital start-up costs and inaccurate portfolio firm valuation models lessening venture capital personnel ability to achieve higher levels of successful biofuel firm exits. The gap in literature addressed in this paper is venture capital best practice strategies to reduce economic uncertainty in biofuel firms investing are an unexplored phenomenon. Reducing and prospering from the effects economic uncertainty requires venture capital firms to implement best practice strategies. This paper provides venture capital firms with best practice strategies to reduce economic uncertainty when in investing in biofuel firms. Utilizing multiples, net present value, internal rate of return, and venture capital model for establishing a valuation price for portfolio firms are actionable economic best practice strategies addressed in this paper. The best practice strategies presented in this paper might reduce economic uncertainty, increase the number of successful exists, and encourage increased funding of biofuel energy firms, contributing to cleaner and healthier communities throughout the United States.