Devigne, David

Manigart, Sophie

Paeleman, Ine

Vanacker, Tom

English

Ghent University Academic Bibliography

Cross-border venture capital and the development of portfolio companies

This paper studies how cross-border venture capital investors as opposed to domestic venture capital 
investors influence the development of their portfolio companies. For this purpose, we use a 
longitudinal research design and track sales from the year of initial venture capital investment up to 
seven years after this investment in 692 European technology-based companies. Findings 
demonstrate how companies backed by cross-border venture capital investors initially exhibit lower 
sales growth compared to companies backed by domestic investors. After a couple of years, 
however, companies backed by cross-border investors exhibit higher sales growth compared to 
companies backed by domestic investors. Finally, companies that raise finance from a syndicate 
comprising both domestic and cross-border investors develop into the biggest sales generators.
Overall, this study provides a more textured understanding of the role played by venture capital 
investors as their portfolio companies develop and thereby require different resources or capabilities 
over time

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https://repository.vlerick.com/bitstream/20.500.12127/3863/1/Devigne_D_WP_CrossBorderVentureCapitalandtheDevelopmentofPortfolioCompanies.pdf

Cross-border venture capital and the development of portfolio companies

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Ghent University Academic Bibliography

Ghent University Academic Bibliography

Vlerick Repository