Small fish, big fish: the performance effects of the relative standing in partners' affiliate portfolios

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Abstract

This study examines whether the value a venture derives from an affiliation depends on its relative standing in the portfolio of all affiliations held by its partner. Relative standing refers to how thenventure ranks among other ventures in the partner’s portfolio with respect to expected returns. The relative standing of a venture in its partner’s portfolio influences the venture’s access to the partner’s resources and the venture’s performance. We also argue that a venture’s relative standing becomes more important to performance when the partner has a larger portfolio or higher status. In addition to a field study, we test the effect of a venture’s relative standing in a venture capital portfolio on its exit likelihood, controlling for endogeneity. We find support for our hypotheses.

Available Versions of this Item

• Small fish, big fish: the impact of venture capital portfolio composition on affiliation benefits. (deposited 09 Jan 2012 09:15)
  • Small fish, big fish: the impact of venture capital portfolio composition on affiliation benefits. (deposited 21 Nov 2014 22:57)
    • Small fish, big fish: the performance effects of the relative standing in partners' affiliate portfolios. (deposited 12 Dec 2014 15:57) [Currently Displayed]