Venture capital as human resource management

Venture capitalists actively participate in attracting, identifying, and suggesting managers for their portfolio companies through internal and external human resource networks. We collect and analyze survey data on the operation of this network. Theoretical and empirical analyses show that cross-se...

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Bibliographic Details
Published inJournal of economics and business Vol. 60; no. 3; pp. 223 - 255
Main Authors de Carvalho, Antonio Gledson, Calomiris, Charles W., de Matos, João Amaro
Format Journal Article
LanguageEnglish
Published New York Elsevier Inc 01.05.2008
Elsevier
Elsevier Science Ltd
SeriesJournal of Economics and Business
Subjects
Capital
Human resource management
Human resources
Portfolio management
Studies
Venture capital
Venture capitalist
G24
Venture capitalist
Capital
J41
Human resources
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Summary:Venture capitalists actively participate in attracting, identifying, and suggesting managers for their portfolio companies through internal and external human resource networks. We collect and analyze survey data on the operation of this network. Theoretical and empirical analyses show that cross-sectional differences among portfolio companies should be, and are, associated with differences in the intensity with which venture capitalists network. Relevant factors include (1) the value of the information transmitted, (2) the riskiness of the activities of the portfolio companies, (3) the size of the venture capital fund, (4) the degree of difficulty in attracting executives, and (5) the reputation of the venture capitalist for successfully recycling managers.
ISSN:0148-6195
1879-1735
DOI:10.1016/j.jeconbus.2007.04.009