Rosenstein, Bruno, Bygrave & Taylor

1993

To evaluate the value added created by VCC and their influence on the board of directors of the business that is financed.

The size of the board of directors increases after the first investment in venture capital. When the VCC is classed among 20 of the best, there is greater representation of the VCC in the make-up of the board of directors. Entrepreneurs perceive the advice from the 20 best VCC very positively. The roles that create greater value are: role of advisor; role of interface with the investors; monitoring of operational and financial performance; recruitment or replacement of the director general; and assistance in case of a short-term crisis. Assistance is of greater value to businesses that are starting up than for those that are at more advanced stages.

Barry

1994

To list the articles that deal with VC and propose avenues of research.

Many authors explain what VCC do but do not show their added value on the businesses that are financed. The other avenues of research deal with the following questions. Should the businesses continue to find formal VC or would they do better to find other sources of financing? Why are business angels' investments important? Do the latter sacrifice returns or are formal VC investments more cost-effective? What are the ideal forms of divestment and under what conditions should they occur?

Lerner (a)

1995

To determine the factors that influence the presence of the VCC on the business' board of directors.

The representation of the VCC on the board of directors increases at the time when there is a change in administrators. The physical distance between the SME and the VCC is an important factor in the involvement of the VCC in boards of directors.

Schilit

1997

To define venture capital and its use, and to study the impact of VC on the business financed and on the economy as a whole.

VCC are not only involved in financing. They spur entrepreneurship, which is responsible for economic growth.

Fernandez-Jardon Fernandez & Martinez Cobas

1998

To check the indirect influence of the VCC on the financing structure, formalization and control of SME.

On average, businesses financed by VC are healthier financially, receive greater public assistance, have greater access to information and are more formalized in their decision-making than businesses that are not financed by VC.

Dufresne

2000

To determine the influence of VCC on the organizational development of SME.

The main hypothesis of the research that VCC intervention stimulates the organizational development of SME is partly confirmed. The lack of representation in the sample and the aggregated variables that are used can explain the weak results that were obtained.

Baker & Gompers

2001

To identify the deciding factors of the size and composition of the board of directors of the business financed by VC.

Financing with venture capital is directly related to the hiring of new external administrators and the composition of the board of directors is the result of a compromise between the businessman and the outsides shareholders. Finally, the probability of a founder keeping his position diminishes as a function of the reputation of the VCC.

Gabrielsson & Huse

2002

To do a survey of the studies made on the boards of directors of businesses financed by VC.

The authors state that the VCC can have different expectations from those of financed businesses as regards the role that they must play on the board of directors.

Hellmann & Puri (a)

2002

To determine the value added resulting from the role of the VCC on businesses that are financed.

The VCC perform roles well beyond the simple role of moneylender. The authors state that the VCC influence human resources management policies, the adoption of programs of options on shares and the recruitment of the VP marketing. In conflict situations, or simply as a result of mutual agreement, the businesses financed by VC tend to replace the founder with a responsible person from outside.

Rosenstein, Bruno, Bygrave & Taylor

1993

To evaluate the value added created by VCC and their influence on the board of directors of the business that is financed.

The size of the board of directors increases after the first investment in venture capital. When the VCC is classed among 20 of the best, there is greater representation of the VCC in the make-up of the board of directors. Entrepreneurs perceive the advice from the 20 best VCC very positively. The roles that create greater value are: role of advisor; role of interface with the investors; monitoring of operational and financial performance; recruitment or replacement of the director general; and assistance in case of a short-term crisis. Assistance is of greater value to businesses that are starting up than for those that are at more advanced stages.

Carter & Van Auken

1994

To study the importance of the stage of development (of the business that is financed) for potential investors and its link with the evaluation criteria of the projects.

VCC have a specific preference as to the stage of development of the business that is to be financed. The VCC that invest in the initial stages of development are more concerned with the liquidity of their investment than they are of risk management. They exercise more control on the financed business, are more likely to replace the director of the business and favour divestment more through an IPO.

Sapienza, Manigart & Vermeir

1996

The type of involvement by the VCC and the extent of its involvement in the financed business depend on uncertainty, the potential agency problems, the experience and the needs of the SME.

The VCC see strategic involvement as their most important role. This involvement takes the form of financial and business advice. Interpersonal roles are of lesser importance.

Schilit

1997

To define venture capital and its use, and to study the impact of VC on the business financed and on the economy as a whole.

VCC are not only involved in financing. They spur entrepreneurship, which is responsible for economic growth.

Dufresne

2000

To determine the influence of VCC on the organizational development of SME.

The main hypothesis of the research that VCC intervention stimulates the organizational development of SME is partly confirmed. The lack of representation in the sample and the aggregated variables that are used can explain the weak results that were obtained.

Lindstrom & Olofsson

2001

To analyse the access to financing by technological businesses at the initial phases of development and the help of investors.

VCC not only take part in financing but they offer different types of assistance. It turns out that high technology businesses, and those that are growing rapidly, face a greater problem in financing than do other businesses. Uncertainty and the emergence of the market justify these problems. In fact, it is the businesses that aim primarily at growth that are most favoured by the VCC and the business angels.

Maula

2001

To study the value added of businesses financed by non-financial corporate venture VCC to businesses that are financed and the factors that determine the value added.

The acquisition of resources, the acquisition of knowledge and the reputation of the VCC are the three means of creating value with businesses that profit from VC financing. Moreover, the benefits that can accrue from the reputation of the VCC depends on the intensity of the relationship between the latter and the business being financed.

Wasserman

2001

To study the first time that the founder gives up control (first generation).

Financing rounds are one of the important reasons for the departure of the founders.

Cornelius & Naqi

2002

To study the relationship between the VCC and the financed businesses.

The transfer of resources and the creation of additional value by the VCC will depend on the perception by the VCC of the need for resources of the businesses that are financed rather than the resources that are available to it.

Hellmann & Puri (a)

2002

To determine the value added resulting from the role of the VCC on businesses that are financed.

The VCC perform roles well beyond the simple role of moneylender. The authors state that the VCC influence human resources management policies, the adoption of programs of options on shares and the recruitment of the VP marketing. In conflict situations, or simply as a result of mutual agreement, the businesses financed by VC tend to replace the founder with a responsible person from outside.

Hochberg

2002

To study the influence of VCC on a business' administration after the IPO.

The authors note that there are significant differences between businesses financed by VC and those that are not. Businesses that are financed by VC more frequently use conservative accounting practices, are more efficient after using the poison pill, have more independent members on the boards of directors and more frequently hire independent auditors than other businesses.

Manigart, Fried, Bruton & Sapienza

2002

To examine the behaviour of VC professionals in three regions (Asia, U.S. and Europe).

On the whole, the role of professionals is seen as being important. Regional differences are discussed, namely in terms of the involvement on boards of directors.

Wang, Wang & Lu

2002

To examine the differences in investment between the VCC that are said to be "independent" and those tied to financial institutions, all listed on the Singapore exchange.

The authors note differences in internal management and training mechanisms of VCC employees. The differences in investment that are mentioned can be summarized as follows: preference of the industrial sector, the length of investment, the number of members on the board of directors, syndication, under-evaluation when introduced to the stock exchange and long-term returns. The authors conclude that independent VCC generate more value.