Specialization and Success: Evidence from Venture Capital

  title={Specialization and Success: Evidence from Venture Capital},
  author={Paul A. Gompers and Anna Kovner and J. Lerner},
  journal={Wiley-Blackwell: Journal of Economics & Management Strategy},
  • Paul A. Gompers, Anna Kovner, J. Lerner
  • Published 2007
  • Business
  • Wiley-Blackwell: Journal of Economics & Management Strategy
  • This paper examines how organizational structure affects behavior and outcomes, studying the performance of different types of venture capital organizations. We find a strong positive relationship between the degree of specialization by individual venture capitalists at a firm and its success. When the individual investment professionals are highly specialized themselves, the marginal effect of increasing overall firm specialization is much weaker. The poorer performance by generalists appears… CONTINUE READING
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