Goal Incongruences in the Venture Capitalist-Entrepreneur Relationship
Type
applied research project
Start Date
October 1, 2005
End Date
September 30, 2007
Status
completed
Keywords
Venture Capital
Entrepreneurship
Agency Theory
Goal Incongruence
Cleantech
Energy Technology
Description
This qualitative study examines the motivations for venture capitalists and entrepreneurs to act opportunistically toward one another. Structured interviews with 14 employees and 5 investors in a venture capital-funded start-up revealed that venture capitalists expect opportunistic behaviour from entrepreneurs during investment rounds but largely trust entrepreneurs between financing rounds. Both venture capitalists and entrepreneurs reported that venture capitalists act opportunistically towards the entrepreneur and other venture partners during all stages of start-up development. These findings have important implications for entrepreneurship research, most notably the applicability of agency theory as a theoretical perspective from which to view the complex relationship between venture capitalists and entrepreneurs.
Leader contributor(s)
Member contributor(s)
Christensen, Esben
Partner(s)
Copenhagen Business School
Funder
Topic(s)
Venture Capital
Entrepreneurship
Agency Theory
Goal Incongruence
Cleantech
Energy Technology
Method(s)
Case Study
Qualitative Interviews
Literature Review
Range
HSG Internal
Range (De)
HSG Intern
Eprints ID
40490