Title: Do human capital and fund characteristics drive follow-up behaviour of early stage high-tech VCs?

Authors: Mirjam Knockaert, Andy Lockett, Bart Clarysse, Mike Wright

Addresses: Vlerick Leuven Gent Management School, University of Ghent, Reep 1, 9000 Gent, Belgium. ' Centre for Management Buy-out Research, Nottingham University Business School, Jubilee Campus, Wollaton Rd. Nottingham, NG8 1BB, UK. ' Vlerick Leuven Gent Management School, University of Ghent, Reep 1, 9000 Gent, Belgium. ' Centre for Management Buy-out Research, Nottingham University Business School, Jubilee Campus, Wollaton Rd., Nottingham, NG8 1BB, UK

Abstract: This paper uses a unique dataset to examine the neglected but important issue concerning the relationship between the human capital and fund characteristics of venture capitalists and post-investment follow-up behaviour in early stage high-tech investments. We found no indication that involvement in monitoring activities by the investment manager is determined by either fund or human capital characteristics. In relation to value-adding activities, human capital variables were the most important, with previous consulting experience and entrepreneurial experience contributing to a higher involvement in value-adding activities. Furthermore, the diversity of an investment manager|s portfolio was negatively related to involvement in value-adding activities. Finally, with respect to fund level characteristics, we found that investment managers of captive funds were less involved in value-adding activities.

Keywords: venture capital; high technology firms; follow-up behaviour; human capital; fund characteristics.

DOI: 10.1504/IJTM.2006.009445

International Journal of Technology Management, 2006 Vol.34 No.1/2, pp.7 - 27

Published online: 03 Apr 2006 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article