Title: Strategic and investment behaviour in the German and Israeli venture capital industries: a comparison with the USA

Authors: Dietmar Grichnik, Robert D. Hisrich

Addresses: Chair of Corporate Finance and Entrepreneurship, Witten/Herdecke University, Alfred-Herrhausen-Str. 50 D-58448 Witten, Germany. ' The Garvin School of International Management, Thunderbird University, 15249 North 59th Avenue, Glendale, Arizona 85306–600, USA

Abstract: Venture capital, the financing concept that has more than a 30-year formal history in some western countries such as the USA, still remains relatively unknown in many countries. The USA and some other countries have a more mature venture capital sector dominated by investments in high technology. However, this is not the case in most other countries. Surprisingly, this is the case in countries with a strong and highly developed economy such as Germany, as well as in smaller countries with a booming high technology sector such as Israel. In both countries, little empirical work has been done to gain insights on how the venture capital industry works. By using the same research methodology as in prior US studies, this paper identifies different investment behaviours of German and Israeli venture capitalists prior to the investment decision and as well as their involvement in the strategy of the portfolio firm.

Keywords: strategy involvement; strategic decision making; venture capital; governance; investment behaviour; venture capital industries; Germany; Israel; United States.

DOI: 10.1504/IJTM.2006.009449

International Journal of Technology Management, 2006 Vol.34 No.1/2, pp.88 - 104

Published online: 03 Apr 2006 *

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