Publication
Title
The role of domestic and cross-border venture capital investors in the growth of portfolio companies
Author
Abstract
This paper studies how the presence of cross-border as opposed to domestic venture capital investors is associated with the growth of portfolio companies. For this purpose, we use a longitudinal research design and track sales, total assets and payroll expenses in 761 European technology companies from the year of initial venture capital investment up to seven years thereafter. Findings demonstrate how companies initially backed by domestic venture capital investors exhibit higher growth in the short term compared to companies backed by cross-border investors. In the medium term, companies initially backed by cross-border venture capital investors exhibit higher growth compared to companies backed by domestic investors. Finally, companies that are initially funded by a syndicate comprising both domestic and cross-border venture capital investors exhibit the highest growth. Overall, this study provides a more fine-grained understanding of the role that domestic and cross-border venture capital investors can play as their portfolio companies grow and thereby require different resources or capabilities over time.
Language
English
Source (journal)
Small business economics: an international journal. - Dordrecht
Publication
Dordrecht : 2013
ISSN
0921-898X [print]
1573-0913 [online]
Volume/pages
40:3(2013), p. 553-573
ISI
000314697900005
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Publication type
Subject
External links
Web of Science
Record
Identification
Creation 17.10.2018
Last edited 28.07.2021