How the Strategic Choices of Their Management Company Affect the Returns on French Venture Capital Funds

28 Pages Posted: 19 May 2015

See all articles by Mireille Jaeger

Mireille Jaeger

University of Lorraine - CEREFIGE Research Center; Université de Lorraine

Vu To Huy

State bank of Viet Nam, associated to CEREFIGE

Date Written: November 3, 2014

Abstract

We study performance factors for French venture capital (VC) funds, focusing on the strategies conducted by VC firms concerning specialization, ownership status, fund focus, fund size, and minimum subscription. We use the crash of technology stocks in March 2000 to show that two groups of VC firms (winners and losers) adopt differentiated strategies in contrasting competitive situations (before and after the crash). To solve the problem of the clustering of VC funds within firms, we use a methodology of multilevel models to test our hypotheses.

Keywords: Venture capital, performance, strategy, multilevel model

JEL Classification: G32, L14, L25

Suggested Citation

Jaeger, Mireille and To Huy, Vu, How the Strategic Choices of Their Management Company Affect the Returns on French Venture Capital Funds (November 3, 2014). Available at SSRN: https://ssrn.com/abstract=2533257 or http://dx.doi.org/10.2139/ssrn.2533257

Mireille Jaeger (Contact Author)

University of Lorraine - CEREFIGE Research Center ( email )

13 rue Michel Ney
Nancy, 54000
France

Université de Lorraine ( email )

Nancy, 54000
France

Vu To Huy

State bank of Viet Nam, associated to CEREFIGE ( email )

Vietnam

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