Abstract
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 language | English |
|---|---|
| Title of host publication | The Palgrave Encyclopedia of Private Equity |
| Publisher | Palgrave |
| Publication status | Published - 24 Jun 2023 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 9 Industry, Innovation, and Infrastructure
Keywords
- Venture Capital
- business growth
- Entrepreneurship
- INNOVATION
- PRIVATE EQUITY
- Due diligence
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