Allocation of Attention to Portfolio Companies and the Performance of Venture Capital Firms

Posted: 22 Aug 2008

See all articles by Mikko Jääskeläinen

Mikko Jääskeläinen

Aalto University

Markku V. J. Maula

Aalto University, Department of Industrial Engineering and Management

Tuukka Seppä

Boston Consulting Group

Date Written: March 2006

Abstract

This article proposes that the attention allocated by venture capitalists to portfolio companies impacts their performance. The article develops arguments for optimal portfolio size and for the moderating roles of syndication frequency and role. The hypotheses receive support from analyses employing longitudinal data of the leading U.S. venture capital firms. Our results indicate the value of venture capitalist involvement and give guidance for its optimal allocation and syndication.

Keywords: Venture capital, portfolio, allocation of attention, performance

JEL Classification: G24, M13

Suggested Citation

Jääskeläinen, Mikko and Maula, Markku V. J. and Seppä, Tuukka, Allocation of Attention to Portfolio Companies and the Performance of Venture Capital Firms (March 2006). Entrepreneurship Theory and Practice, Vol. 30, No. 2, pp. 18-206, Available at SSRN: https://ssrn.com/abstract=1246514

Mikko Jääskeläinen

Aalto University ( email )

P.O. Box 21210
Helsinki, 00101
Finland

Markku V. J. Maula (Contact Author)

Aalto University, Department of Industrial Engineering and Management ( email )

PO Box 15500
FI-00076 AALTO
Espoo
Finland

HOME PAGE: http://users.aalto.fi/mmaula/

Tuukka Seppä

Boston Consulting Group ( email )

J.F. Kennedylaan 100
3741 EH Baarn
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
783
PlumX Metrics