Value contributions of the venture capitalist in Mexico: building an exit for the investment

Venture capitalists provide money and non-monetary contributions to high-growth ventures to help them become great companies. Although it is known that these contributions have an impact on the growth of the firm, little is known in Mexico of their nature, how they get into the venture, and how they...

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Autor principal: Wiencke,Enrique
Lenguaje:English
Publicado: Universidad Alberto Hurtado. Facultad de Economía y Negocios 2017
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-27242017000300003
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Sumario:Venture capitalists provide money and non-monetary contributions to high-growth ventures to help them become great companies. Although it is known that these contributions have an impact on the growth of the firm, little is known in Mexico of their nature, how they get into the venture, and how they contribute to the development of the company. The present article reports a proposed substantive theory that explains how the venture capitalist work hand in hand with the entrepreneur to grow the company. This substantive theory emerged from data collected through interviews to nine venture capitalists and nine entrepreneurs, and analyzed as proposed by the grounded theory methodology. The substantive theory acknowledges that contributions of venture capitalists, often called value-added, are relative to building an exit for the investment.