The CEO, venture capitalists, and the board

Management control systems in innovation companies: a literature based framework

“…Sweeting 1991;Mitchell et al 1997;Davila 2005;Foster 2005, 2007;Sandino 2007;Silvola 2008). The crucially important role of venture capital (VC) as a source of financing in particular for innovation and high-technology companies is well acknowledged (Rosenstein et al 1993). Furthermore, Granlund and Taipaleenmäki (2005) confirm that the presence of VC funding leads to more sophisticated MCSs.…”

Creating Additional Benefits in Enterprises by Private Equity Funds: Results of Researches

“…Four other researchers- Rosentstein, Bruno, Bygrave, and Taylor (1989;1993) studied the contribution of private equity representatives in the work of portfolio companies' supervisory boards. They analysed 162 companies from the high-tech industry which make use of the private equity capital.…”

The role of private equity: from focus on the product to focus on value creation

“…Both the effort and the usefulness of outside board members are regarded as greater in the early stages (seed, start-up, and first-stage financing) than the later stages (second-stage financing and later) (Rosenstein et al, 1993). As suggested by Boeker (1989), Brittain (1989) and Bamford et al (1999), early decisions and founding conditions, in the formative stages of an organisation, have lasting effects which: imprint the firm, limit its strategic choice, and continue to impact its long-term performance.…”