Frontiers of Entrepreneurship
THE IMPACT OF POSTFUNDING INVOLVEMENT BY VENTURE CAPITALISTS ON LONGTERM PERFORMANCE OUTCOMES
Lowell W. Busenitz, University of Houston
Douglas D. Moesel, Lehigh University
James O. Fiet, University of the Pacific
The Venture Capital Option: Positive Involvement or Overinvolvement?
Measuring LongTerm Entrepreneurial Venture Performance
DETERMINANTS OF LONG-TERM VENTURE PERFORMANCE
Learning Assistance Theory and VC Assistance
Business Management Advice
New Venture Team Dismissals
Effects of Fairness in the VCs-NVT Relationship
CONCLUSIONS AND IMPLICATIONS
This study examined the longterm effect of various forms of venture capitalist managerial involvement on the status of their investee firms. Operational assistance and strategic management advice were not significantly related to a ventures status. The dismissal of new venture team members did have a significantly negative impact on venture status, whereas procedural justice had a significantly positive impact on venture status. We suspect that perceptions of fair treatment by venture capitalists encourage greater respect, trust, and adaptability in dealing with venture problems and opportunities.
© 1997 Babson College All Rights Reserved
Last Updated 06/05/98