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The early research on venture capital and their value adding activities and contributions have largely been exploratory inductive and descriptive. In later years the research have been moving beyond the stage of anecdotal evidence and towards more sophisticated quantitative methods. These methods are of a deductive and explanatory nature. These later methods have succeeded in demonstrating that some VC over time outperform others, however little is known about what they do and there is a need for longitudinal studies. Therefor the objective of this thesis is to test hypothesis in a deductive explanatory and longitudinal research design. In this thesis there are used three different data collection methods and these are triangulated in a final analysis and discussion. The first data source is a literature review of the added value phenomenon and this review reveals that prior research do not adequately measure the added value outcome in an objective and quantified matter. This thesis is the first, to the author knowledge, to explore the added value phenomenon based on an objective measure of the company?s successful development. There are developed five hypothesis based on the observation from the literature review and these are tested in the second data source namely a quantitative binary logistic regression analysis. The following hypothesis that are developed and tested are; (1) a positive and trustworthy relationship facilitate the transaction of the added value activities and development of a successful portfolio company; (2) VCs strategic added value activities develop successful portfolio companies; (3) VCs financial added value activities develop successful portfolio companies; (4) VCs recruitment of key personnel for the portfolio company facilitate added value activities and develop successful portfolio companies; and (5) VCs added value through external legitimation develops successful portfolio companies. The data for this second data source were collected in 2004 from 70 VC-backed Norwegian high technology and high growth entrepreneurial companies. For this thesis a definition for evaluating their success do not simply comprise only the holy grail of IPO, but also including other more objective measures. In the third data source two companies are studied in a comparative case. Hypothesis 1, 3, 4, and 5 are supported. This thesis argues for and concludes that a positive, mutual and trustworthy relationship between the VC and their portfolio company is conditional for and facilitates the transaction of value added. In order to ensure the transaction of value added the VC recruits key personnel for their portfolio companies. The most important value added by VC is external legitimation in addition to liquidity management.