Venture capitalists add value to high-tech ventures, boosting innovation and success.
The article explores whether venture capitalists add value to the firms they support, focusing on the relationship between the venture capitalist and the CEO. Data from 51 US ventures suggest that high-tech ventures benefit more from venture capital. Regular communication between the venture capitalist and CEO, as well as open interaction, lead to greater value. The study shows that venture capitalist involvement is linked to better venture performance, especially for high innovation ventures.