Abstract

Universally, Venture Capital Firms (VCFs) have been identified as important innovation financing companies supporting Research and Development (R & D) operations, from boosting elementary scientific research to technology advancement and commercialization. The main objective of this study is to investigate how VCFs groom Technology Based Firms (TBFs) to successful exit through equity and or board participation. This research is a face to face interview of 47 respondents which comprise of both TBFs and VCFs in Malaysia. Interview responses were transcribed and coded for the items that emerged were used for the theme development required for the discussions of findings. This research concludes that the involvement of venture capital firms on board of portfolio companies is vital for the performance of technology based firms in Malaysia.

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