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The optimal level of control in venture capital
Mini Dissertation (MBA)--University of Pretoria, 2017.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2018
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| _version_ | 1867613673508306944 |
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| access_status_str | Open Access |
| author2 | Marks, Jonathan |
| author_browse | Marks, Jonathan |
| author_facet | Marks, Jonathan |
| collection | Thesis |
| dc_rights_str_mv | © 2018 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini Dissertation (MBA)--University of Pretoria, 2017. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/64829 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:39:53.208Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/64829 The optimal level of control in venture capital Marks, Jonathan ichelp@gibs.co.za Waldeck, Myles UCTD Mini Dissertation (MBA)--University of Pretoria, 2017. The level of control required by venture capitalists in the portfolio enterprises they invest can have materially influence the trajectory of enterprise performance. Although VCs stress control to mitigate investment non-performance, intense control may avert the ability of ENs in maximising the enterpriseÕs return on investment. An understanding into optimal level of control is evidently important. To gain an understanding into the optimal level of control in venture capital to enable the attainment of more optimal cooperative outcomes. This multiple case study research explored what the optimal level of control is, explore what moderating factors influence this optimum level, and explore what suggestions could achieve more optimal cooperative outcomes. By investigating optimality through a cooperative rather than a competitive exchange perspective to provide insights into how and why different allocation arrangements and exertion methods are applied across three cases of South African VCs operating different types of seed, start-up, growth, and development stage venture capital firms. This research found that optimal level of control should satisfy the venture capitalistÕs financing constraint by enabling the venture capitalist to monitor and direct entrepreneur behaviour to ensure invested capital is used appropriately, while maximising the entrepreneurÕs incentives by being more relational than formal, more supportive than interfering, and more strategic than managerial. That the optimal level of control is a function of the venture capitalistÕs relative bargaining power, the venture capitalistÕs perceived level of trust and confidence in cooperation with the entrepreneur, and the venture capitalistÕs preferred approach, where the venture capitalistÕs preferences in conjunction with their own perceptions have the greatest influence. To achieve more optimal cooperative outcomes, venture capitalists and entrepreneurs should improve trust and confidence in cooperation by revealing private information new to the other and encouraging procedural justice by treating the other honestly and fairly lt2018 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2018-05-11T09:02:33Z 2018-05-11T09:02:33Z 30-03-18 2017 Mini Dissertation Waldeck, M 2017, The optimal level of control in venture capital, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/64829> http://hdl.handle.net/2263/64829 en © 2018 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD The optimal level of control in venture capital |
| title | The optimal level of control in venture capital |
| title_full | The optimal level of control in venture capital |
| title_fullStr | The optimal level of control in venture capital |
| title_full_unstemmed | The optimal level of control in venture capital |
| title_short | The optimal level of control in venture capital |
| title_sort | optimal level of control in venture capital |
| topic | UCTD |
| url | http://hdl.handle.net/2263/64829 |