The Model of Permanent venture capital Formation in Iranfrom an institutional approach

In spite of the ever-increasing number of venture capitals (VCs), the volume of projects and investments, both in terms of number and amount, indicates the lack of formation and continuity of this type of investment in Iran. Therefore, it is argued that “what is the pattern of VC investment formation in Iran? In order to achieve the designated model, this research is fundamental method in terms of purpose, and has used qualitative approach (based on systematic data collection) and the strategy of the qualitative grounded theory research method. Data collection was conducted during deep and semi-structured interviews with 13 founders of VC firms, target entrepreneurs as well as policy makers with characteristics of having at least 3 years of activity in education and policymaking or having experience in executive activities in financing through VC investing or accepting vc invests. The snowball sampling method was used in this study. Findings show that the main issue that leads to the sustainability of continuation of efficient life cycle of vc investment, is the tendency to maximize the interests of the stakeholders. Since informal institutions have an impact on the formation of vc investing, one can use strategies in order to develop formal institutions and establish a sustainable co-construction between the public and private sectors, which is influenced by the environmental factors and the phenomenon of diffusion and can result in the continuation of efficient life cycle of vc investment. The storyline is based on this.