Effects of Innovativeness and Venture Stage on Venture Capitalist-Entrepreneur Relations

Harry J. Sapienza; Allen C. Amason

doi:10.1287/inte.23.6.38

Effects of Innovativeness and Venture Stage on Venture Capitalist-Entrepreneur Relations

Harry J. Sapienza, Allen C. Amason

Management

Research output: Contribution to journal › Article › peer-review

Abstract

 Innovative new ventures constitute a disproportionately large source of economic growth, and the amount of venture capital flowing into such ventures is increasing. A key component in the success of venture-capital-backed firms is the relationship between the lead venture capitalist (VC) and the venture's founding entrepreneur (E). We examined the impact of innovativeness and venture stage on VC-E relations in 51 venture-capital-backed firms and found: (1) greater marketing innovativeness in ventures associated with greater openness in VC-E pairs, (2) greater technological innovativeness in ventures associated with greater conflict in VC-E pairs, and (3) more frequent VC-E interaction in earlier stage ventures. We found that the relationship between technological innovativeness and openness of VC-E relations depended upon the venture's stage.
 
 

Original language	American English
Journal	INFORMS Journal on Applied Analytics
Volume	23
DOIs	https://doi.org/10.1287/inte.23.6.38
State	Published - Dec 1 1993

Disciplines

Business
Management Sciences and Quantitative Methods
Marketing

Keywords

finance: investment
marketing: new products

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1287/inte.23.6.38License: Unspecified

Cite this

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title = "Effects of Innovativeness and Venture Stage on Venture Capitalist-Entrepreneur Relations",

abstract = " Innovative new ventures constitute a disproportionately large source of economic growth, and the amount of venture capital flowing into such ventures is increasing. A key component in the success of venture-capital-backed firms is the relationship between the lead venture capitalist (VC) and the venture's founding entrepreneur (E). We examined the impact of innovativeness and venture stage on VC-E relations in 51 venture-capital-backed firms and found: (1) greater marketing innovativeness in ventures associated with greater openness in VC-E pairs, (2) greater technological innovativeness in ventures associated with greater conflict in VC-E pairs, and (3) more frequent VC-E interaction in earlier stage ventures. We found that the relationship between technological innovativeness and openness of VC-E relations depended upon the venture's stage. ",

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AU - Sapienza, Harry J.

AU - Amason, Allen C.

N1 - Innovative new ventures constitute a disproportionately large source of economic growth, and the amount of venture capital flowing into such ventures is increasing. A key component in the success of venture-capital-backed firms is the relationship between the lead venture capitalist (VC) and the venture's founding entrepreneur (E).

PY - 1993/12/1

Y1 - 1993/12/1

N2 - Innovative new ventures constitute a disproportionately large source of economic growth, and the amount of venture capital flowing into such ventures is increasing. A key component in the success of venture-capital-backed firms is the relationship between the lead venture capitalist (VC) and the venture's founding entrepreneur (E). We examined the impact of innovativeness and venture stage on VC-E relations in 51 venture-capital-backed firms and found: (1) greater marketing innovativeness in ventures associated with greater openness in VC-E pairs, (2) greater technological innovativeness in ventures associated with greater conflict in VC-E pairs, and (3) more frequent VC-E interaction in earlier stage ventures. We found that the relationship between technological innovativeness and openness of VC-E relations depended upon the venture's stage.

AB - Innovative new ventures constitute a disproportionately large source of economic growth, and the amount of venture capital flowing into such ventures is increasing. A key component in the success of venture-capital-backed firms is the relationship between the lead venture capitalist (VC) and the venture's founding entrepreneur (E). We examined the impact of innovativeness and venture stage on VC-E relations in 51 venture-capital-backed firms and found: (1) greater marketing innovativeness in ventures associated with greater openness in VC-E pairs, (2) greater technological innovativeness in ventures associated with greater conflict in VC-E pairs, and (3) more frequent VC-E interaction in earlier stage ventures. We found that the relationship between technological innovativeness and openness of VC-E relations depended upon the venture's stage.

KW - finance: investment

KW - marketing: new products

UR - https://doi.org/10.1287/inte.23.6.38

U2 - 10.1287/inte.23.6.38

DO - 10.1287/inte.23.6.38

M3 - Article

SN - 2644-0873

SN - 1526-551X

VL - 23

JO - INFORMS Journal on Applied Analytics

JF - INFORMS Journal on Applied Analytics

ER -

Effects of Innovativeness and Venture Stage on Venture Capitalist-Entrepreneur Relations

Abstract

Disciplines

Keywords

UN SDGs

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