A Longitudinal Study on the Impact of Venture Capital Firm Heterogeneity on Portfolio Company Growth
Although scholars agree that not all partners are equal, it remains unclear whether companies will particularly benefit from forming relationships with more experienced or more legitimate firms. This study examines the impact of venture capital firm experience and legitimacy on portfolio company growth. For this purpose, I track 94 companies forming initial investment relationships with venture capital firms for up to five years after the initial investment. Linear Mixed Models (LMMs) are used to gain more insight into the non-linear growth trajectories of portfolio companies. Findings indicate that both companies backed by venture capital firms with more industry experience, but not overall experience, and companies backed by more legitimate venture capital firms exhibit higher growth curves.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.