TY  - JOUR
U1  - Wissenschaftlicher Artikel
A1  - Proksch, Dorian
A1  - Stranz, Wiebke
A1  - Ernst, Cornelia
A1  - Pinkwart, Andreas
A1  - Schefczyk, Michael
A1  - Röhr, Nino
T1  - Value-adding activities of venture capital companies
BT  - A content analysis of investor’s original documents in Germany
JF  - Venture Capital
N2  - As many studies have shown, venture capital companies pursue value-adding activities for their portfolio firms to achieve abnormal returns compared to the market. Value-adding activities are complex and highly diverse, but also are very relevant to practice. Hence, the topic has been considerably analyzed in academic literature. However, there continues to be a lack of in-depth knowledge because of the sensitivity and scarcity of publicly available data from venture capital companies. We provide in-depth insights into the practices of venture capital companies. Using a longitudinal data-set obtained from nine venture capital companies in Germany, we qualitatively analyzed their value-adding activities. Drawing on iestors’ original documents, including business plans, iestment committee papers, reports and annual statements of the iestments, we created a typology of which value-adding services were performed. Results suggest that, consistent with prior studies, venture capital companies are highly engaged in supporting ventures with respect to financial and human capital issues as well as in establishing strong governance mechanisms to reduce information asymmetries between founders and iestors. Venture capital companies also make moderate use of their network of relevant contacts. Support for operational issues is low.
KW  - Venture capital
KW  - Non-financial value added
KW  - Non-financial contributions
KW  - Value creation
KW  - New venture
Y1  - 2017
SN  - 1369-1066
SS  - 1369-1066
U6  - https://doi.org/10.1080/13691066.2016.1242573
DO  - https://doi.org/10.1080/13691066.2016.1242573
VL  - 19
IS  - 3
SP  - 129
EP  - 146
ER  -