Enabling global reach: A qualitative study on the role of venture capital networks in the internationalization of portfolio ventures

Abstract

This master thesis explores the non-financial contributions of Venture Capitalists (VC’s) in enabling the internationalization of their Portfolio Ventures (PV’s). While financial support from VC’s is well-documented, this study emphasizes the added value of non-financial aspects such as strategic networks. Through a multiple case study of four VC’s and their five PV’s, the research explores how VC networks enable internationalization by addressing specific challenges and opportunities faced by PV’s. Findings reveal that VC’s are crucial in facilitating international market entry and growth, they achieve this by utilizing geographic intelligence, strategically positioning key personnel, and offering localized insights. Additionally, VC’s diversify resources and markets for their PV’s, which mitigates dependency risks and improves time efficiency, factors that are essential for navigating global expansion. The study underlines the importance of international networks, conceptualized as ecosystems, offering resources and connections that facilitate rapid global presence and sustainable growth. Moreover, proactive management by VC’s, including regular evaluation and updating of connections, ensures that networks remain relevant and valuable for PV’s seeking to internationalize. Creation of referral networks further enhances PV’s brand credibility and trust, enabling them to overcome inherent newness and resource constraints. Overall, this thesis underscores the strategic importance of VC networks in enablement of internationalization providing a holistic understanding of how VC’s contribute to global success of their PV’s through non-financial means.