Venture Capital as Human Resource Management / Antonio Geldson de Carvalho, Charles W. Calomiris, Joao Amaro de Matos.

Format:

Book

Author/Creator:

Carvalho, Antonio Geldson de.

Contributor:

National Bureau of Economic Research.

Calomiris, Charles W.

Amaro de Matos, Joao.

Series:

Working Paper Series (National Bureau of Economic Research) no. w11350.

NBER working paper series no. w11350

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2005.

Summary:

Venture capitalists add value to portfolio firms by obtaining and transferring information about senior managers across firms over time. Information transfer occurs on a significant scale and takes place both among a single venture capitalist's portfolio firms and between different venture capitalists' firms via a network of venture capitalists, which venture capitalists use to locate and relocate managers.

Cross-sectional differences are associated with differences in the intensity with which venture capitalists network. The observable factors relevant in explaining the intensity with which venture capitalists network include: 1) the value of the information transmitted through the network, 2) the riskiness of the activities of portfolio firms, 3) the size of the venture capital fund, 4) the degree of difficulty in enticing executives to manage portfolio firms, and 5) the reputation of the venture capitalist for successfully recycling managers. These factors reflect costs and benefits to venture capitalists of participating in the network.

Notes:

Print version record

May 2005.