Human capital theory and venture capital firms: exploring "home runs" and "strike outs"

Dimo P. Dimov; Dean A. Shepherd

doi:10.1016/j.jbusvent.2003.12.007

Human capital theory and venture capital firms: exploring "home runs" and "strike outs"

Dimo P. Dimov, Dean A. Shepherd

Management

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Abstract

Using a human capital perspective, we investigated the relationship between the education and experience of the top management teams of venture capital firms (VCFs) and the firms' performance. We found that although general human capital had a positive association with the proportion of portfolio companies that went public [initial public offering (IPO)], specific human capital did not. However, we did find that specific human capital was negatively associated with the proportion of portfolio companies that went bankrupt. Interestingly, some findings were contrary to expectations from a human capital perspective, specifically the relationship between general human capital and the proportion of portfolio companies that went bankrupt. Future research is suggested.

Original language	English
Pages (from-to)	1-21
Number of pages	21
Journal	Journal of Business Venturing
Volume	20
Issue number	1
DOIs	https://doi.org/10.1016/j.jbusvent.2003.12.007
Publication status	Published - 1 Jan 2005

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10.1016/j.jbusvent.2003.12.007

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NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Business Venturing. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Business Venturing, vol 20, issue 1, 2005, DOI 10.1016/j.jbusvent.2003.12.007
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Human capital theory and venture capital firms: exploring "home runs" and "strike outs"

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