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Value-add and portfolio construction strategies in venture capital: a case study approach on investor perceptions

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  • Elisabetta Sakiotis
  • Axel Buchner

Abstract

VCs invest in high-performing entrepreneurial firms with the aim of generating high returns. Value-add and portfolio construction are two strategic levers that investors can use to differentiate themselves in an increasingly competitive environment. This paper adopts a case study approach and interviews ten prominent European investors from Western Europe. Its findings are that: 1) value-add is a main preoccupation of VCs where human capital, interpersonal relationships, and monitoring matter; 2) portfolio construction varies and is influenced by considerations of diversification, syndication and exits. This paper contributes to the literature by providing a synthesised understanding of VC activities in a more mature and competitive European start-up ecosystem.

Suggested Citation

  • Elisabetta Sakiotis & Axel Buchner, 2024. "Value-add and portfolio construction strategies in venture capital: a case study approach on investor perceptions," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 16(1), pages 31-68.
    • Handle: RePEc:ids:ijeven:v:16:y:2024:i:1:p:31-68
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