The Impact of Venture Capital on Innovation: Beyond Portfolio Companies

Juanita Gonzalez-Uribe*, Robyn Klingler-Vidra

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter


The thrust of research on the relationship between venture capital and innovation focuses on venture capitalists’ ability to pick winners and add value to their portfolio companies (i.e., the companies in which they invest). This entry expands the scope of research on the economic contribution of venture capital by reviewing emerging studies on how the due diligence process that venture capitalists conduct adds value to a wider set of companies; the approximately 30 out of 100 they consider for investment, rather than the 1 out of 100 in which they ultimately invest. Initial findings offer a rough estimate that due diligence value-add to nonportfolio companies can be as large as half of its investment value-add to portfolio companies.
Original languageEnglish
Title of host publicationThe Palgrave Encyclopedia of Private Equity
Publication statusPublished - 24 Jun 2023


  • Venture Capital
  • business growth
  • Entrepreneurship
  • Due diligence


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