Title: Activities performed by venture capitalists in their portfolio companies – a comparison between Silicon Valley and Sweden

Authors: Martin Bryman, Pontus Cederberg, Martin Ekstrom, Hans Bjornsson

Addresses: Chalmers University of Technology, Sweden. ' Chalmers University of Technology, Sweden. ' CIFE, Stanford University, Stanford, CA 94305-4020, USA. ' CIFE, Stanford University, Stanford, CA 94305-4020, USA

Abstract: This paper compares the activities of Swedish and Silicon Valley venture capitalists to support portfolio companies during the venture management phase. A set of case studies from the two regions investigated the venture capitalists| contributions from the point of view of both the venture capitalists and the portfolio companies. The study indicates that venture capitalists in Silicon Valley are more active in networking on behalf of the portfolio companies, and that they are actively involved in the recruitment and replacement of management team members. The Swedish venture capitalists, on the other hand, primarily use the board as a mode to influence the management of their portfolio companies. Possible explanations for the discrepancy between the two regions include differences in the venture capitalists| industry and technology experience, industry focus and the development and access to personal networks.

Keywords: venture capital; Sweden; Silicon Valley; international comparison; activities; contribution; entrepreneurship; innovation.

DOI: 10.1504/IJEIM.2003.003944

International Journal of Entrepreneurship and Innovation Management, 2003 Vol.3 No.5/6, pp.585 - 608

Published online: 10 May 2004 *

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