RT Journal Article
SR Electronic
T1 The Lower-Risk Startup: How Venture
Capitalists Increase the Odds of Startup Success
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 7
OP 19
DO 10.3905/jpe.2013.16.2.007
VO 16
IS 2
A1 Teten, David
A1 AbdelFattah, Adham
A1 Bremer, Koen
A1 Buslig, Gyorgy
YR 2013
UL http://jpe.pm-research.com/content/16/2/7.abstract
AB The authors recently completed the first-ever study of how venture capitalists systematically help their portfolio companies grow. They found that certain VCs are aggressively building out a focused portfolio operations skillset and recruiting more people with operational backgrounds. Based on a range of sources, the authors believe that most funds with well-developed “portfolio operator” models have top-quartile returns (above 20% internal rate of return in the relevant time periods). The authors detail the resources that operationally focused VCs have to leverage and how exactly they assist their portfolio companies.