Cross-border venture capital and the development of portfolio companies

D. Devigne, T. Vanacker, Sophie Manigart and I. Paeleman
Additional contact information
I. Paeleman: Vlerick Leuven Gent Management School

Vlerick Leuven Gent Management School Working Paper Series from Vlerick Leuven Gent Management School

Abstract: This paper studies how cross-border venture capital investors as opposed to domestic venture capital investors influence the development of their portfolio companies. For this purpose, we use a longitudinal research design and track sales from the year of initial venture capital investment up to seven years after this investment in 692 European technology-based companies. Findings demonstrate how companies backed by cross-border venture capital investors initially exhibit lower sales growth compared to companies backed by domestic investors. After a couple of years, however, companies backed by cross-border investors exhibit higher sales growth compared to companies backed by domestic investors. Finally, companies that raise finance from a syndicate comprising both domestic and cross-border investors develop into the biggest sales generators. Overall, this study provides a more textured understanding of the role played by venture capital investors as their portfolio companies develop and thereby require different resources or capabilities over time.

Pages: 42 pages
Date: 2011-09-02
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.vlerick.com/en/15334-VLK/version/defaul ... vlgms-wp-2011-03.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.vlerick.com/en/15334-VLK/version/default/part/AttachmentData/data/vlgms-wp-2011-03.pdf [301 Moved Permanently]--> https://www.vlerick.com/en/15334-VLK/version/default/part/AttachmentData/data/vlgms-wp-2011-03.pdf)

Related works:
Working Paper: CROSS-BORDER VENTURE CAPITAL AND THE DEVELOPMENT OF PORTFOLIO COMPANIES (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vlg:vlgwps:2011-03

Access Statistics for this paper

More papers in Vlerick Leuven Gent Management School Working Paper Series from Vlerick Leuven Gent Management School Contact information at EDIRC.
Bibliographic data for series maintained by Isabelle Vandenbroere ().