IDEAS home Printed from https://ideas.repec.org/a/taf/veecee/v9y2006i1p23-41.html
   My bibliography  Save this article

Venture capital funds: Do they meet the expectations of portfolio firms?

Author

Listed:
  • Terje Berg-Utby
  • Roger Sørheim
  • L. Øystein Widding

Abstract

This paper examines the expectations and post-investment perceptions of value added activities from venture capital funds. Exploring the perspective of the company that is backed by venture capital, the deviation between expectations and post-investment perceptions are analysed. Insight from resource-dependence theory is employed as a theoretical point of departure. The empirical results show that significant gaps exist between the expectations of entrepreneurs and what they perceive to be the contributions from their venture capital backers. Indeed, the venture capitalists (VCs) do not even meet the entrepreneurs' modest expectations of their potential contribution. The difference between expectations and perceived outcome from the venture capitalist's involvement may be due, either to the overselling of their competence by venture capitalists, or to the limited amount of time that they allocate to each venture on account of their large investment portfolios.

Suggested Citation

  • Terje Berg-Utby & Roger Sørheim & L. Øystein Widding, 2006. "Venture capital funds: Do they meet the expectations of portfolio firms?," Venture Capital, Taylor & Francis Journals, vol. 9(1), pages 23-41, April.
  • Handle: RePEc:taf:veecee:v:9:y:2006:i:1:p:23-41
    DOI: 10.1080/13691060600995998
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13691060600995998
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/13691060600995998?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:dgr:rugsom:96a09 is not listed on IDEAS
    2. Boersma, Jacques S.K.Th. & Stegwee, Robert A., 1996. "Exploring the issues in knowledge management," Research Report 96A09, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giuseppe Schinaia, 2005. "Empirical Data And Mathematical Structures In The Epidemic Modeling Of Parenteral Hepatitis In Italy," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 33-58.
    2. Y. Kadioglu & O. Üzengi Aktürk & M. Tomak, 2014. "Electronic and geometric structure ofAuxCuyclusters studied by density functional theory," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 25(06), pages 1-19.
    3. M. Samah & B. Moula, 2011. "AB INITIOSTUDY OF STRUCTURAL STABILITY AND MAGNETIC PROPERTIES OFCon(n = 2 - 10): A STUDY BASED ON PSEUDOPOTENTIALS DFT," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 359-369.
    4. V. Alvin Shubert & Steven P. Lewis, 2012. "Size-Dependence Of Infrared Spectra In Niobium Carbide Nanocrystals," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 23(08), pages 1-11.
    5. Mevlut Bulut & Renato P. Camata, 2007. "A Generalized Cell Method For Hard Disk Molecular Dynamics Simulation Of Polydisperse Systems," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 18(09), pages 1407-1416.
    6. Dimitrios Koumparoulis, 2011. "The Proportionality Hypothesis in Capital Theory: an Assessment of the Literature," EuroEconomica, Danubius University of Galati, issue 27, pages 27-39, February.
    7. Waqas Mahmood & Qing Zhao, 2014. "First principles calculations on structural, elastic, acoustic and optical properties of fluorite phaseTiO2under pressure," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 25(07), pages 1-13.
    8. M. Samah & B. Boughiden, 2010. "STRUCTURES, ELECTRONIC AND MAGNETIC PROPERTIES OFC20FULLERENES DOPED TRANSITION METAL ATOMSM@C20(M=Fe,Co,Ti,V)," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 21(12), pages 1469-1477.
    9. Yu-Liang Mao & Xiao-Hong Yan & Yang Xiao & Jue-Xian Cao & Jun Xiang, 2005. "First-Principles Study Of Doped Single Wall Carbon Nanotubes," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 16(09), pages 1363-1369.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:veecee:v:9:y:2006:i:1:p:23-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TVEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.