Human resources management, a non-financial benefit of venture capital

This article addresses the question of whether venture capital brings non-financial benefits to the firms it funds. I propose that venture capital adds value because venture capitalists are able to transfer information about senior managers across firms and time. For this transfer to exist on a sign...

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Autor principal:	Antonio Gledson de Carvalho
Formato:	article
Lenguaje:	EN PT
Publicado:	Universidade de São Paulo 1999
Materias:	venture capital human resources network non-financial benefits Economics as a science HB71-74
Acceso en línea:	https://doaj.org/article/4f716c7bdc2e4f86b19a4c33eaed06f2
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id	oai:doaj.org-article:4f716c7bdc2e4f86b19a4c33eaed06f2
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spelling	oai:doaj.org-article:4f716c7bdc2e4f86b19a4c33eaed06f22021-11-24T16:08:07ZHuman resources management, a non-financial benefit of venture capital0101-41611980-5357https://doaj.org/article/4f716c7bdc2e4f86b19a4c33eaed06f21999-06-01T00:00:00Zhttps://www.revistas.usp.br/ee/article/view/117601https://doaj.org/toc/0101-4161https://doaj.org/toc/1980-5357This article addresses the question of whether venture capital brings non-financial benefits to the firms it funds. I propose that venture capital adds value because venture capitalists are able to transfer information about senior managers across firms and time. For this transfer to exist on a significant scale, it is necessary that venture capitalists operate a network, within which they are involved in locating and relocating managers. Results obtained through a survey of venture capitalists based in the US confirm the existence of such a network: The majority of the respondents affirm that it is common for them 1) to act on suggestions from their colleagues when hiring managers; and 2) to recommended managers to other venture capitalists. Econometric analysis shows that the factors relevant to explain the intensity with which venture capitalists network include: 1) the value of the information transmitted though the network; 2) the degree of risk that venture capitalists attribute to their investments; 3) how difficult venture capitalists find it to entice executives to manage firms funded with their capital; and 4) the gains that the venture capitalists who suggest managers can obtain when enticing managers to accept job offers. Antonio Gledson de CarvalhoUniversidade de São Pauloarticleventure capitalhuman resourcesnetworknon-financial benefitsEconomics as a scienceHB71-74ENPTEstudos Econômicos, Vol 29, Iss 2 (1999)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	venture capital human resources network non-financial benefits Economics as a science HB71-74
spellingShingle	venture capital human resources network non-financial benefits Economics as a science HB71-74 Antonio Gledson de Carvalho Human resources management, a non-financial benefit of venture capital
description	This article addresses the question of whether venture capital brings non-financial benefits to the firms it funds. I propose that venture capital adds value because venture capitalists are able to transfer information about senior managers across firms and time. For this transfer to exist on a significant scale, it is necessary that venture capitalists operate a network, within which they are involved in locating and relocating managers. Results obtained through a survey of venture capitalists based in the US confirm the existence of such a network: The majority of the respondents affirm that it is common for them 1) to act on suggestions from their colleagues when hiring managers; and 2) to recommended managers to other venture capitalists. Econometric analysis shows that the factors relevant to explain the intensity with which venture capitalists network include: 1) the value of the information transmitted though the network; 2) the degree of risk that venture capitalists attribute to their investments; 3) how difficult venture capitalists find it to entice executives to manage firms funded with their capital; and 4) the gains that the venture capitalists who suggest managers can obtain when enticing managers to accept job offers.
format	article
author	Antonio Gledson de Carvalho
author_facet	Antonio Gledson de Carvalho
author_sort	Antonio Gledson de Carvalho
title	Human resources management, a non-financial benefit of venture capital
title_short	Human resources management, a non-financial benefit of venture capital
title_full	Human resources management, a non-financial benefit of venture capital
title_fullStr	Human resources management, a non-financial benefit of venture capital
title_full_unstemmed	Human resources management, a non-financial benefit of venture capital
title_sort	human resources management, a non-financial benefit of venture capital
publisher	Universidade de São Paulo
publishDate	1999
url	https://doaj.org/article/4f716c7bdc2e4f86b19a4c33eaed06f2
work_keys_str_mv	AT antoniogledsondecarvalho humanresourcesmanagementanonfinancialbenefitofventurecapital
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Human resources management, a non-financial benefit of venture capital

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