Venture capital firms’ specialisation, differences and complementarities
MetadataShow full item record
The paper analyses the differences in venture capital (VC) firms, proposes a classification of the firms and empirically investigates their investment and co-investment behaviour. The VC firms are not homogeneous and beside funds they possess a diverse set of nonfinancial resources which they optimize. A classification is developed based on VC firm resources and specialization represented by organizational form and affiliation. Based on Australian market data, we classify the VC firms in three categories, namely strategic, financial and independent using resource based theory, and highlight differences. Then the firms’ specialization is related to their portfolio characteristics to identify and analyse differences and complementarities in terms of investment strategies. The influence of specialization in investment and co-investment strategies is also analysed. This study shows that specialization influences investment decisions and co-investor selection. Implications of such investment practices on resource efficiency, financial viability and transition to sustainability are also discussed.
This open access article is distributed under the Creative Commons license http://creativecommons.org/licenses/by/3.0/
Showing items related by title, author, creator and subject.
Galbreath, Jeremy Thomas (2004)The resource-based view of the firm (RBV) is one the most important areas of research content to emerge in the field of strategic management in the last 15 years. The RBV is prescriptive. That is, the RBV prescribes that ...
Glabreath, Jeremy; Galvin, Peter (2006)Purpose The purpose of this paper is to explore the degree to which intangible resources explain performance variation among firms.Design/methodology/approach The method includes a purpose-designed survey to measure ...
Cong, Lingmei; Van der Zahn, J-L.; Tower, Greg (2011)Establishing the firm's primary listing on a foreign rather than domestic capital market is a phenomenon virtually unique to firms from the People's Republic of China (PRC). This study determines whether earnings quality ...