see the link to a new working paper for the National Bureau for Economic Research from Michael Ewens of Carnegie Mellon and Matthew Rhodes-Kropf of Harvard Business School. they suggest that individual partners' human capital is 2 to 5 times more valuable than the VC firm's organizational capital in explaining investment performance. they focus in particular on skill transfer and exit styles. the authors also suggest that this is why VC firms tend to cap investment at about a few hundred million dollars of assets under management, as over that size it's too much demand on partners' time. they also note this is why we see few mergers and acquisitions between VC firms.further comments welcome...paper is available for free, following the link below.matt
Topics
Type
Our Poblications
0
Promote to Editors
0