This thesis consists of an introductory part, including venture capital definitions, thehistory of venture capital in Sweden, and an overview of the venture capital process, and fourself-contained papers on venture capital and the venture capital process.
investigates the standardisation of the contractual strategies applied in theSwedish venture capital industry. The study was based on a questionnaire data regarding theuse of contractual covenants. Our results indicate that the greatest differences occur among those with different investment preferences. There would appear to be two distinct venturecapital cultures controlling contractual choices in these groups. Our findings generally conform to expectations as predicated by institutional theory.
investigate venture capital firms’ valuation practices in two different economiccontexts, in the economic boom of 1999 and in the downturn market of 2002 by using anexperimental case study design with a case based on a real firm. Contrary to our expectations,in times of heightened stringency and economic downturn, venture capital investors employ fewer valuation models than they do in boom times. The main contribution of our research isan increase in the knowledge of venture capitalists’ valuation practices under different marketconditions. It can also contribute to researchers developing more relevant theories of valuation, valuation models and valuation practice.
empirically examines the linkage between governance, trust and performancebased on a questionnaire sent to entrepreneurs in venture capital backed companies inSweden. The results suggest that the level of trust between the venture capitalist and theentrepreneur affects the relationship between VCs governance and the portfolio company’sperformance.
analyse exit strategies and exit-directed activities among entrepreneurs in venturecapital relationships. The study focuses on the effect of the venture capital organization(independent, public sector and captive) on strategy and exit-directed activities. The resultsindicate that firms with a trade sale strategy tend to have a higher degree of exit activitiescompared to other exit strategies. Furthermore, the type of venture capital organizationinvolved (especially when comparing private independent VCs to public sector VCs) alsoaffects exit strategies and activities.