A conceptual framework of venture capitalists value-added activitie and portfolio companies' performance (ID: 6-051)

The impact of venture capitalists value-added activities on portfolio companies' performance had triggered widely academic interest in the West recently. As a matter of fact, the relationship between venture capitalists value-added activities and portfolio companies' performance in China probably varied from the West. Yet, only a few quantitative investigations in China about this issue have been performed so far. Therefore, it is very necessary for further research on this specific issue. This paper mainly studies the relationship between venture capitalists value-added activities and portfolio companies' performance. The authors develop a framework for analyzing the impact of venture capitalists value-added activities on portfolio companies'performance in China. Grounded on the existing theories and previous empirical studies for venture capitalists value-added activities, this research concludes that venture capitalists assisting in strategic issues, networking assistance, helping professional recruiting, operating services and obtaining alternative sources of financing will be positively related to the performance of portfolio companies in China. Additionally, this study will provide a platform to future empirical studies and also facilitate researchers to go one step further to find out which kinds of value-added activities can improve portfolio companies' performance.