Added Value
Added value refers to various non-monetary services which venture capital firms provide in addition to their participation commitment to their startups. The services are provided with the goal of increasing the startup’s growth and, consequently, the value of the company over the period of investment commitments. The services include operational and strategic business functions for startups.[1] Specifically, startups benefit from the venture capital firms management and industry expertise, as well as from their access to attractive customer networks, business partners and other potential investors. In addition, the venture capital firms serve as sparring partners in strategy development processes and the support corporate controlling.[2]
References
[1] cf. Boué 2008, pp 24, 27-28
[2] cf. Rauschenbusch 2005, p 105
Boué, Andreas R. (2008): Wie komme ich zu Venture Capital? Praxisratgeber mit Insidertipps für die erfolgreiche Kapitalakquise, Wien.
Rauschenbusch, Alec (2005): Der Weg zu einer erfolgreichen Finanzierung. Venture Capital als Finanzierungsinstrument für High-tech-Start-ups, in: Venture Capital Magazin. Sonderausgabe „Tech-Guide 2005“, pp 104–105.