The Joint Influence of Interaction History and Time Horizon on Venture-Capitalist/New-Venture Team Cooperation

Babson College Entrepreneurship Research Conference (BCERC) 2007

Frontiers of Entrepreneurship Research 2007

13 Pages Posted: 6 Dec 2007

See all articles by Terje Berg-Utby

Terje Berg-Utby

Skagerak Venture Capital

Roger Sorheim

Norwegian University of Science and Technology (NTNU)

Truls Erikson

Norwegian University of Science and Technology

Abstract

This paper investigates post investment cooperation between new venture teams and venture capitalists a propos the longevity of the relationship. Due to the structure of venture capital funds, the authors of this piece argue that the joint effect of the history of interaction between the parties, and time horizon of the relationship, is an especially important determinant of the cooperation within venture-capitalist/new-venture team relationships. The hypotheses were developed and tested empirically on a sample consisting of 70 venture capital backed companies. Both history of interaction and the time horizon of the relationship are found to significantly affect the new venture team's confidence in cooperation.

Keywords: Entrepreneurship

JEL Classification: M13

Suggested Citation

Berg-Utby, Terje and Sorheim, Roger and Erikson, Truls, The Joint Influence of Interaction History and Time Horizon on Venture-Capitalist/New-Venture Team Cooperation. Babson College Entrepreneurship Research Conference (BCERC) 2007; Frontiers of Entrepreneurship Research 2007. Available at SSRN: https://ssrn.com/abstract=1064761

Terje Berg-Utby (Contact Author)

Skagerak Venture Capital ( email )

Norway

Roger Sorheim

Norwegian University of Science and Technology (NTNU) ( email )

Trondheim NO-7491
Norway

Truls Erikson

Norwegian University of Science and Technology ( email )

Trondheim NO-7491
Norway

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