Hj. Sapienza et Ac. Amason, EFFECTS OF INNOVATIVENESS AND VENTURE STAGE ON VENTURE CAPITALIST-ENTREPRENEUR RELATIONS, Interfaces, 23(6), 1993, pp. 38-51
Citations number
37
Categorie Soggetti
Management,"Operatione Research & Management Science
Innovative new ventures constitute a disproportionately large source o
f economic growth, and the amount of venture capital flowing into such
ventures is increasing. A key component in the success of venture-cap
ital-backed firms is the relationship between the lead venture capital
ist (VC) and the venture's founding entrepreneur (E). We examined the
impact of innovativeness and venture stage on VC-E relations in 51 ven
ture-capital-backed firms and found: (1) greater marketing innovativen
ess in ventures associated with greater openness in VC-E pairs, (2) gr
eater technological innovativeness in ventures associated with greater
conflict in VC-E pairs, and (3) more frequent VC-E interaction in ear
lier stage ventures. We found that the relationship between technologi
cal innovativeness and openness of VC-E relations depended upon the ve
nture's stage.