OK to invest. And what then?
New book on venture capital investors and portfolio firms
What happens once a venture capitalist (VC) has decided to invest in a portfolio company or entrepreneur? That’s the question professors Sophie Manigart (Vlerick Business School) and Mike Wright (Imperial College Business School, UK) tackle in their book “Venture Capital Investors and Portfolio Firms”. What is the impact of the VC? What is the role of syndication? When does the VC exit from the investment? And what are the possible returns for venture capital investors? The book was funded through the Gimv Private Equity Chair at Vlerick Business School.
The book considers venture capital firms as investors in young growth-oriented companies. The authors focus on the later phases of the venture capital (VC) investment process. They therefore emphasize monitoring, value adding, and exiting activities. They also include a review of the literature on the outcome of venture capital investment activities.
The book deals with six principal areas:
- What venture capital firms do.
- The impact of VCs on portfolio firms and other stakeholders.
- The role of syndication.
- The nature and timing of exit from VC investments.
- The role of VCs in portfolio companies that undergo an initial public offering (IPO).
- The returns from investing in VC.
The book concludes with a detailed agenda for further research. To aid the reader who wishes to pursue particular papers in more detail, the authors provide a summary of the main papers in this literature in a set of tables where they identify the authors, publication date, the journal, the main research question, the theoretical perspective, data, and the principal findings.
Venture Capital Investors and Portfolio Firms
Sophie Manigart & Mike Wright