Governance in Entrepreneurial Ecosystems: Venture Capitalists vs. Technology Parks

Entrepreneurial Learning and the Role of Venture Capitalists

This paper develops a model of entrepreneurial learning in order to explain how VCs support the process of entrepreneurial learning and thereby add value to their ventures. We draw on two generic approaches to learning, termed the hypothesis-testing mode and the hermeneutic mode, which turn out to be closely interrelated in such learning processes. The resulting model comprises four categories,...

Venture Capitalists, Monitoring and Advising

Venture capitalists are widely regarded as financial intermediaries who provide not just financing, but also advice and monitoring. This view rests on solid empirical foundations: according to Gorman and Sahlman (1989), for example, lead venture investors visit each portfolio company an average of 19 times per year, and spend 100 hours in direct contact (on site or by phone) with the company. V...

Challenges facing venture capitalists in developing economies

Post-IPO Governance: Venture Capitalists’ Role in Real Options Exercise Decisions

One important role of corporate governance is to ensure that real options are exercised in the interest of the shareholders. This paper explores whether and how this can be achieved in start-up firms by the venture capitalist retaining a post-IPO equity stake. Our setting is a firm whose future prospects are uncertain and strategic choices remain to be made. The payoff to entrepreneur and share...

Investment Criteria of Singapore Venture Capitalists

Venture capital industry in Singapore is of recent origin. However, funds under management in Singapore have grown from S$ 45 million in 1983 to S$ 7300 million in 1995. These developments together with the recent announcement of government’s vision of Singapore becoming a hub for venture capital in the region, provides an opportunity for an examination of the venture capital industry in Singap...