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Human capital and the internationalization of venture capital firms

Author

Listed:
  • Manigart, S.
  • Collewaert, V.
  • Wright, M.
  • Pruthi, S.
  • Lockett, A.
  • Bruining, H.
  • Hommel, U.
  • Landstrom, H.

    (Vlerick Leuven Gent Management School)

Abstract

We examine the neglected area of internationalisation by VCs. Using a representative sample of 195 VCs, we show that the decision of a European VC firm to invest internationally is driven by its human resources. Having more VC executives in general and more VC executives with previous international experience in specific, results in a higher probability of investing internationally. In contrast, more VC executives with experience in the VC industry or with an engineering background lead to a higher probability of remaining domestic.

Suggested Citation

  • Manigart, S. & Collewaert, V. & Wright, M. & Pruthi, S. & Lockett, A. & Bruining, H. & Hommel, U. & Landstrom, H., 2006. "Human capital and the internationalization of venture capital firms," Vlerick Leuven Gent Management School Working Paper Series 2006-01, Vlerick Leuven Gent Management School.
    • Handle: RePEc:vlg:vlgwps:2006-01
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    References listed on IDEAS

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    1. Wright, Mike & Lockett, Andy & Pruthi, Sarika, 2002. "Internationalization of Western Venture Capitalists into Emerging Markets: Risk Assessment and Information in India," Small Business Economics, Springer, vol. 19(1), pages 13-29, August.
    2. Graham Hall & Ciwen Tu, 2003. "Venture capitalists and the decision to invest overseas," Venture Capital, Taylor & Francis Journals, vol. 5(2), pages 181-190, April.
    3. Roger Leeds & Julie Sunderland, 2003. "Private Equity Investing In Emerging Markets," Journal of Applied Corporate Finance, Morgan Stanley, vol. 15(4), pages 111-119, September.
    4. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    5. Sapienza, Harry J. & Manigart, Sophie & Vermeir, Wim, 1996. "Venture capitalist governance and value added in four countries," Journal of Business Venturing, Elsevier, vol. 11(6), pages 439-469, November.
    6. Lockett, Andy & Murray, Gordon & Wright, Mike, 2002. "Do UK venture capitalists still have a bias against investment in new technology firms," Research Policy, Elsevier, vol. 31(6), pages 1009-1030, August.
    7. Andersson, Svante, 2004. "Internationalization in different industrial contexts," Journal of Business Venturing, Elsevier, vol. 19(6), pages 851-875, November.
    8. Dimov, Dimo P. & Shepherd, Dean A., 2005. "Human capital theory and venture capital firms: exploring "home runs" and "strike outs"," Journal of Business Venturing, Elsevier, vol. 20(1), pages 1-21, January.
    9. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July.
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    Cited by:

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    2. Douglas Cumming & Sofia Johan, 2009. "Pre-seed government venture capital funds," Journal of International Entrepreneurship, Springer, vol. 7(1), pages 26-56, March.
    3. Itxaso del-Palacio & Xiaotian Zhang & Francesc Sole, 2012. "The capital gap for small technology companies: public venture capital to the rescue?," Small Business Economics, Springer, vol. 38(3), pages 283-301, April.

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