Foundations and Trends® in Entrepreneurship > Vol 9 > Issue 4–5

Venture Capital Investors and Portfolio Firms

Sophie Manigart, Ghent University and Vlerick Business School, Belgium, sophie.manigart@vlerick.com Mike Wright, Centre for Management Buy-out Research, Imperial College Business School, UK, mike.wright@nottingham.ac.uk
 
Suggested Citation
Sophie Manigart and Mike Wright (2013), "Venture Capital Investors and Portfolio Firms", Foundations and Trends® in Entrepreneurship: Vol. 9: No. 4–5, pp 365-570. http://dx.doi.org/10.1561/0300000040

Published: 19 Apr 2013
© 2013 S. Manigart and M. Wright
 
Subjects
Firm ownership,  High technology,  Management structure, governance and performance,  New business financing,  Corporate finance,  Corporate finance,  Corporate governance,  Financial Services
 
Keywords
G24 Venture CapitalL26 Entrepreneurship
Venture capitalVC processSyndicationInitial public offering
 

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In this article:
1 Introduction
2 What Do Venture Capital Investors Do?
3 The Impact of Venture Capital on Portfolio Companies and Stakeholders
4 Syndication
5 Venture Capital Exits
6 Venture Capital Returns
7 Conclusions and Future Research
Acknowledgments
References

Abstract

The principal goal of this monograph is to provide an overview of relevant aspects and research findings pertaining to the period after the venture capital firm (also known as venture capitalist or VC) has made the decision to invest in a particular portfolio company (or entrepreneur). Drawing principally upon refereed journal papers in entrepreneurship, finance, and management, our review is divided into six principal areas: (1) what venture capital firms do, (2) the impact of VCs on portfolio firms and other stakeholders, (3) the role of syndication, (4) the nature and timing of exit from VC investment, (5) the role of VCs in portfolio companies that undergo an initial public offering (IPO), and (6) the returns from investing in VC. The monograph concludes with a detailed outline of an agenda for further research. We provide a summary of the main papers in this literature in a set of tables in which we identify the authors, publication date, the journal, the main research question, the theoretical perspective, data, and the principal findings.

DOI:10.1561/0300000040
ISBN: 978-1-60198-650-4
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ISBN: 978-1-60198-651-1
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Table of contents:
Introduction
What do venture capital investors do?
The impact of venture capital on portfolio companies and stakeholders
Syndication
Exit of portfolio firms
Venture capital returns
Conclusions and future research

Venture Capital Investors and Portfolio Firms

In Venture Capital Investors and Portfolio Firms venture capital firms are considered as investors in young growth-oriented companies. The authors focus on the later phases of the venture capital (VC) investment process. They therefore emphasize monitoring, value adding, and exiting activities. They also include a review of the literature on the outcome of venture capital investment activities. Research findings are drawn principally from refereed journal papers in entrepreneurship, finance, and management. The monograph is divided into six principal areas: 1. What venture capital firms do. 2. The impact of VCs on portfolio firms and other stakeholders. 3. The role of syndication. 4. The nature and timing of exit from VC investments. 5. The role of VCs in portfolio companies that undergo an initial public offering (IPO). 6. The returns from investing in VC. Venture Capital Investors and Portfolio Firms concludes with a detailed agenda for further research. To aid the reader who wishes to pursue particular papers in more detail, the authors provide a summary of the main papers in this literature in a set of tables where they identify the authors, publication date, the journal, the main research question, the theoretical perspective, data, and the principal findings.

 
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