Title: Antecedents of technology ventures' growth: comparing investor experience and effort

Authors: Isabell M. Welpe, Michael Dowling, Arnold Picot

Addresses: Institute for Information, Organisation and Management, Ludwig-Maximilians-University Munich, Ludwigstrasse 28 VG II, 80539 Munich, Germany. ' Management of Innovation and Technology, University of Regensburg, 93040 Regensburg, Germany. ' Institute for Information, Organisation and Management, Ludwig-Maximilians-University Munich, Ludwigstrasse 28 VG II, 80539 Munich, Germany

Abstract: We use the resource-based view to examine the contribution of venture capitalists| experience and effort to the development, growth and economic success of their technology ventures. Based on recent survey data from 272 venture capital-financed ventures in German-speaking Europe, we use a structural modelling approach to show that a venture|s economic performance (as measured by increase in company valuation and employee growth) results from greater venture capital firm experience. In addition, we show that venture capitalists| effort moderates the relationship between venture capital firms| experience and the economic success of their ventures, and between the goal fulfillment and economic success of ventures.

Keywords: technology ventures; firm growth; venture capital; firm experience; effort; technology management; resource-based view; RBV; structural modelling; economic performance; company valuation; employee growth; economic growth.

DOI: 10.1504/IJTM.2010.035856

International Journal of Technology Management, 2010 Vol.52 No.1/2, pp.69 - 97

Published online: 06 Apr 2013 *

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