What do we know from the venture capital cycle?

Abstract

This article explores the current state and progress of Venture Capital Cycle research. Based on a literature review, an integrative framework about the Venture Capital Cycle is developed, encompassing the (1) pre- investment phase, (2) management phase, (3) exit phase, and the interrelationships between them. Results suggest that most prominent literature of Venture Capital Cycle has focused on analyzing the entrepreneurial environment, deal evaluation and structure, fundraising process, management skills and expertise, and their relationships with new venture’s performance. Nonetheless, there are still research opportunities in each stage of the VC cycle, especially in exploring how venture capital firms deal with control issues at the level of new venture’s corporate governance and its exit strategy. This article reveals trends and future areas for Venture Capital Cycle research.