IMPACT OF VALUE-ADDED ACTIVITIES OF EARLY-STAGE VENTURE CAPITALISTS ON THE NUMBER OF NEW INVESTORS IN SUCCESSIVE FINANCIAL ROUNDS OF VENTURES 10

We integrate agency and resource dependence theories to explain how the value-added activities of early-stage venture capitalists affect the number of new investors in successive financial rounds of ventures. Drawn on a sample of 227 ventures, we find a positive impact of participation in CEO replacement and creation of linkages to potential investors and negative impact of advising in business plan preparation.