Venture capital firms' trust impacts company performance and exit strategies
The article explores how venture capital firms in Sweden value entrepreneurial ventures through four separate studies. The first study shows that different investment preferences lead to distinct contractual strategies in the venture capital industry. The second study reveals that venture capital investors use fewer valuation models during economic downturns compared to boom times. The third study finds that trust between venture capitalists and entrepreneurs impacts the performance of venture capital-backed companies. Lastly, the fourth study shows that the type of venture capital organization influences exit strategies and activities, with firms opting for trade sales having more exit activities.