The Impact of Venture Capital Monitoring: The Impact of Venture Capital Monitoring
By Shai Bernstein, Xavier Giroud, Richard R. Townsend. 2015
359 citations recorded by the source corpus.
We show that venture capitalists' (VCs) on-site involvement with their portfolio companies leads to an increase in both innovation and the likelihood of a successful exit. We rule out selection effects by exploiting an exogenous source of variation in VC involvement: the introduction of new airline routes that reduce VCs' travel times to their existing portfolio companies. We confirm the importance of this channel by conducting a large-scale survey of VCs, of whom almost 90% indicate that direct flights increase their interaction with their portfolio companies and management, and help them better understand companies' activities.
Subfields: Accounting, Management Science and Operations Research
View Paper: https://www.semanticscholar.org/paper/45c0a4aeb33d5248df4a2cac63c4683729f775e5
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
- Joern H. Block
- Christian Fisch
- Silvio Vismara
- Song Ma
- René Andres
- Paul P. Momtaz
- Tom Vanacker
- Lars Hornuf
In Management Science and Operations Research
Citations in the corpus
- Private equity investment criteria: An experimental conjoint analysis of venture capital, business angels, and family offices (2019, methodology): “Recently, Bernstein et al. (2017) used a similar experimental approach to assess the importance of startup characteristics to investors in early-stage companies.”
- What Is a Patent Worth? Evidence from the U.S. Patent “Lottery” (2019, neutral): “A significant body of research discusses the importance of these funding sources for startups (Gorman and Sahlman 1989, Hellmann and Puri 2000, Gompers and Lerner 2001, Hochberg, Ljungqvist, and Lu 2007, Bernstein, Giroud, and Townsend 2016, and Hochberg, Serrano, and Ziedonis 2018).”
- The Life Cycle of Corporate Venture Capital (2019, methodology): “I also link this database to startups in VentureXpert using a fuzzy matching method based on company name, basic identity information, and innovation profiles, similar to GonzalezUribe (2013) and Bernstein, Giroud, and Townsend (2016).”