Search results
1 – 2 of 2Torbjörn Ljungkvist and Börje Boers
The purpose of this study is to understand venture capital family businesses (VCFBs) governance of portfolio companies through the deal process.
Abstract
Purpose
The purpose of this study is to understand venture capital family businesses (VCFBs) governance of portfolio companies through the deal process.
Design/methodology/approach
This study applies a theory-developing approach. A model of VCFB governance is developed whose key aspects are illuminated by four examples (cases) of VCFBs.
Findings
Recent research suggests that a venture capital firm's corporate deal processes can be divided into the pre-deal, deal and post-deal phases. Based on the age, size and succession dimensions, propositions for how a governance trajectory develops for VCFBs, affecting the deal process of target family firms (TFFs), are presented. These propositions highlight how the family owners' actions and behavior are related to VCFB governance, which in turn, influences the three phases involved in making an investment.
Originality/value
The propositions suggest how personal and administrative VCFBs' governance of the deal process of portfolio companies is significantly affected by centrifugal and centripetal forces that drive the respective types of governance where third-generation family owners appear as changers of governance approach.
Details