The effects of initial firm configuration and VC involvement on future firm growth: a case of picking or forming winners
Paper in proceedings, 2015

The main objective of our study is to explore to what extent the long-term performance of new firms is the result of initial firm configurations or VC’s involvement during the investment period. Our analysis among new VC-backed firms in Sweden over their full venture capital cycle gives strong support for the effect of initial funding conditions on the long-term growth of new firms. VC involvement, on the contrary, has much more marginal role in explaining long-term growth. In fact, VCs involvement seems to occur when firms are in trouble (i.e. “fire-fighter” role).

venture capital

performance

growth

Author

Anders Isaksson

Chalmers, Technology Management and Economics, Supply and Operations Management

Erno T. Tornikoski

Babson College Entrepreneurship Research Conference (BCERC), June 10-13

Driving Forces

Innovation and entrepreneurship

Subject Categories

Business Administration

More information

Created

10/8/2017