Venture Capitalists’ Role in New Venture Internationalization

• Main Authors: LUTZ, Eva, GEORGE, Gerard
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Business; International Business; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4679; https://www.iijournals.com/doi/abs/10.3905/jpe.2012.16.1.026
• Institution: Singapore Management University

In this article, the authors explore the impact of venture capitalists on new venture internationalization. Based on 18 in-depth case studies, common patterns of how resource provisioning by venture capitalists influences international growth in their portfolio companies are outlined. Slack financial resources and heterogeneous non-financial resources provided by venture capitalists positively enhance the scale of internationalization in new ventures. In addition, the results emphasize a behavioral view of the relationship between venture capitalists and entrepreneurs, wherein the venture capitalist encourages the entrepreneur to strive for fast international growth.