Smart Money by Venture Capitalists

The author analyses how portfolio companies perceive support ("smart money") provided by venture capitalists once they are invested. As frequently observed, portfolio companies and venture capitalists do not always share the same view when value-added services are concerned. This book aims at explaining the portfolio companies' perception of importance of selected areas of support. This perception is then compared with the portfolio companies' self- perceived competence and other key characteristics of the venture capitalist-portfolio company relationship. The novel approach of this research lies in analyzing the portfolio companies' perception via adaptive conjoint analysis. The findings of this study point out that, firstly, the assessment of relative importance of support is only to a limited extent dependent on certain characteristics of the portfolio company, and secondly, support provided by lead-investors is not always welcomed unconditionally. This book addresses all professionals in the venture capital and private equity industry, and - above all - portfolio companies that are considering venture capital or private equity financing.