The impact of venture capital financing on the long-term performance of startups: a managerial perspective
In this article the authors explore the effect of venture capital financing on long term performance of startups in the European Union by looking at the influence of managerial experience, efficiency of resource allocation and strategic usage of venture capital investment. The research using a pane...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Applied Sciences in Bielsko-Biała
2024-09-01
|
| Series: | Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej |
| Subjects: | |
| Online Access: | https://asej.eu/index.php/asej/article/view/819 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1841526592239566848 |
|---|---|
| author | Vadim Limar |
| author_facet | Vadim Limar |
| author_sort | Vadim Limar |
| collection | DOAJ |
| description |
In this article the authors explore the effect of venture capital financing on long term performance of startups in the European Union by looking at the influence of managerial experience, efficiency of resource allocation and strategic usage of venture capital investment. The research using a panel data analysis of 10 startups from the period from 2019 to 2023, evaluates the influence of venture capital on startups growth trajectories and operational success. Results suggest that startups run by management teams with prior experience utilizing venture capital are more likely to leverage funds wisely compared to startups whose management teams do not have prior experience with venture capital. Moreover, resource allocation becomes efficient, especially towards research and development, marketing, and scaling operations to achieve superior longer run performance outcomes. The challenge of fund raising is also underlined, as the importance of strong relationships with the venture capital investors, that are not just sources of capital but can also provide strategic guidance and networks. The research also analyzes some issues companies struggle with, such as competition, volatile markets, and managing the complexity of scaling operations.
|
| format | Article |
| id | doaj-art-acdd616cc6a54f51961e0bb7d5011f60 |
| institution | Kabale University |
| issn | 2543-9103 2543-411X |
| language | English |
| publishDate | 2024-09-01 |
| publisher | University of Applied Sciences in Bielsko-Biała |
| record_format | Article |
| series | Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej |
| spelling | doaj-art-acdd616cc6a54f51961e0bb7d5011f602025-01-16T16:01:12ZengUniversity of Applied Sciences in Bielsko-BiałaZeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej2543-91032543-411X2024-09-0128310.19192/wsfip.sj3.2024.14The impact of venture capital financing on the long-term performance of startups: a managerial perspectiveVadim Limar0Berkeley Haas Bringo Inc In this article the authors explore the effect of venture capital financing on long term performance of startups in the European Union by looking at the influence of managerial experience, efficiency of resource allocation and strategic usage of venture capital investment. The research using a panel data analysis of 10 startups from the period from 2019 to 2023, evaluates the influence of venture capital on startups growth trajectories and operational success. Results suggest that startups run by management teams with prior experience utilizing venture capital are more likely to leverage funds wisely compared to startups whose management teams do not have prior experience with venture capital. Moreover, resource allocation becomes efficient, especially towards research and development, marketing, and scaling operations to achieve superior longer run performance outcomes. The challenge of fund raising is also underlined, as the importance of strong relationships with the venture capital investors, that are not just sources of capital but can also provide strategic guidance and networks. The research also analyzes some issues companies struggle with, such as competition, volatile markets, and managing the complexity of scaling operations. https://asej.eu/index.php/asej/article/view/819venture capital,startup performancemanagerial experienceresource allocationEuropean Unionlong-term growth |
| spellingShingle | Vadim Limar The impact of venture capital financing on the long-term performance of startups: a managerial perspective Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej venture capital, startup performance managerial experience resource allocation European Union long-term growth |
| title | The impact of venture capital financing on the long-term performance of startups: a managerial perspective |
| title_full | The impact of venture capital financing on the long-term performance of startups: a managerial perspective |
| title_fullStr | The impact of venture capital financing on the long-term performance of startups: a managerial perspective |
| title_full_unstemmed | The impact of venture capital financing on the long-term performance of startups: a managerial perspective |
| title_short | The impact of venture capital financing on the long-term performance of startups: a managerial perspective |
| title_sort | impact of venture capital financing on the long term performance of startups a managerial perspective |
| topic | venture capital, startup performance managerial experience resource allocation European Union long-term growth |
| url | https://asej.eu/index.php/asej/article/view/819 |
| work_keys_str_mv | AT vadimlimar theimpactofventurecapitalfinancingonthelongtermperformanceofstartupsamanagerialperspective AT vadimlimar impactofventurecapitalfinancingonthelongtermperformanceofstartupsamanagerialperspective |