The post-investment relationship between a venture capitalist and its investee companies

Purpose - The purpose of this paper is to identify the key characteristics of the post-investment relationship between the venture capital firm and its investee companies.Design methodology approach - The research is a case study of a major UK venture capital firm using qualitative research to determine the key characteristics of the post-investment relationship. The study is based on interviews with parties on both sides of the relationship.Findings - While the results reflect the findings of the entrepreneurship and venture capital literature they also point to the importance of network growth and development for organizational learning in the venture capital industry, professionalization of investee firms and as a context in which the selection of the entrepreneur and the post investment relationship are set.Research limitations implications - The research has the limitation of most case studies that the results cannot readily be generalized, in this case to the wider population of venture capital firms. Confidentiality issues also limited the extent to which a longitudinal study could be conducted.Practical implications - A better understanding of the post-investment relationship can inform entrepreneurs in their pitch for funds and in their anticipation of the post investment relationship. This understanding can also assist venture capital firms in the management of this relationship.Originality value - The case study uses data from rare access to a venture capital firm. It also differs by interviewing both parties to the post-investment relationship, that is venture capitalist and investee firm.