Do Human Capital and Fund Characteristics Drive Follow-Up Behaviour of Early Stage High-Tech Vcs?

Human capital and fund characteristics both impactfollow-up behavior of venture capital (VC) firms. However, little research hasexamined the relationship between human capital and fund characteristics andthe ways in which they impact follow-up activities.The conceptual issuesrelated to VC and the impact of human capital and fund characteristics on VCare discussed through examination of past research, resulting in the creationof several hypotheses. To assess these hypotheses, a stratified sample (n=68) of early-stagehigh-tech VC firms from seven European regions (UK, France, Belgium, theNetherlands, Germany, Sweden, Finland) yields data for thestudy.According to the study's findings, human capital acts as the mostsignificant predictor of value-adding activities.Investment managers bothwith more diverse portfolios and with captive funds were less likely to engagein value-adding activities. (AKP)