Smart Money by Venture Capitalists- A Two-Sided Coin

The author analyses how portfolio companies perceive support (smartmoney) provided by venture capitalists once they are invested. As frequentlyobserved portfolio companies and venture capitalists do not always sharethe same view when value-added services are concerned. This book aims atexplaining the portfolio companies' perception of importance of selectedareas of support. This perception is then compared with the portfolio companies'self- perceived competence and other key characteristics of the venturecapitalist-portfolio company relationship. The novel approach of thisresearch lies in analyzing the portfolio companies' perception via adaptiveconjoint analysis. The findings of this study point out that firstly the assessmentof relative importance of support is only to a limited extent dependenton certain characteristics of the portfolio company and secondly supportprovided by lead-investors is not always welcomed unconditionally. This bookaddresses all professionals in the venture capital and private equity industryand - above all - portfolio companies that are considering venture capital orprivate equity financing.