Do venture capitalists' characteristics affect the performance of the firms they back?

Maria Luisa Alemany Gil, José Martí Pellón

Research output: Conference paperContribution

Abstract

Previous research has already addressed the issue of the impact of venture capital (VC) backing on the growth patterns of investee firms. Based on qualitative, hand-collected data, other studies analyzed the different tasks performed by venture capitalists (VCs) to add value to their portfolio companies. The aim of this paper is to provide evidence of the effect of some VCs' characteristics on the performance of the investee firms over time. The findings are based on panel data of numerical variables on a highly representative sample of VC investments in Continental Europe. This approach allows us to keep track of the changes over time and to control for the effect of the funding and the value added by VCs separately. Our findings show that value added is significant in companies at the expansion stage for some VCs characteristics, whereas performance on start-up companies seems related to funding alone.
Original languageEnglish
Publication statusPublished - 28 Jun 2006
EventEFMA 2006 Annual Conference -
Duration: 28 Jun 20061 Jul 2006

Conference

ConferenceEFMA 2006 Annual Conference
Period28/06/061/07/06

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