Academy of Strategic Management Journal Volume 18, Issue 5, 2019 1 1939-6104-18-5-422 STRATEGIC BALANCING OF PRE-INVESTMENT PRACTICE AND POST-INVESTMENT EFFECTS OF VENTURE CAPITALISTS (VCs) Fatema Nusrat Chowdhury , Daffodil International University K.B.M. Rajibul Hasan, Agrani Bank Limited Umme Kulsum, Daffodil International University Sharmin Akhter, Bangladesh University of Business & Technology (BUBT) Nurul Mohammad Zayed, Daffodil International University ABSTRACT Venture Capitalists (VCs) practice investment activities for financing potential startups with innovative ideas. This paper initially addresses the investment process including five consecutive stages of business plan origination, screening, evaluation, negotiating investment and financing with assistance. Thereafter it identifies the challenges faced by VCs over their investment decision diving into pre and post investment segments taking consideration of potential biases and moral hazard. Finally, to offset such challenges by heuristics, three sophisticated methods-verbal protocol analysis, conjoint analysis, and actuarial decision model are generated for VCs to spur entrepreneurs by profitable investment. The consequences of the study are helpful for VCs in their investment decision-making process to amplify their prosperity rate. Keywords: Venture Capitalists, Investment Process, Evaluation, Decision-Making, Entrepreneur. INTRODUCTION Entrepreneurs and new ventures with innovative ideas often get financially nurtured from both private equity and public equity financing for becoming succoring and productive. Side by side, intuitional investors hunt down emerging economies for the prospective return on investment, as they typically expertise quicker economic growth with a lot of bigger risk than those found in advanced economy. To address this issue, Venture Capitalists (VCs) is the blessing option for capital funding potential upcoming businesses with a great combo of unique ideas, young energetic entrepreneurs, developed business plan and steady growth in emerging industr ies. However, it doesn’t only invest in financial form but also it can be done by managerial or technical expertise. “Investment capital cycle” initiates with fundraising and continues through capital investing, monitoring the appreciation in firm valuation with optimum profit and finally ends with existing strategy of acquisition, merger or Initial Public Offering (IPO). The purpose of the study is to illustrate an identical model for VCs while taking investment decision by balancing the gap between pre and post investment practices in developing nations. The rest of the paper is structured as follows. Section 2 highlights relevant literature reviews. The objectives along with the methodology of the study are depicted. Under section 4, the investment process used by VCs is discussed. This section also highlights the challenges such as biases and moral hazard by differentiating pre-investment practice from post