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THE DYNAMICS OF VENTURE CAPITAL COMPANIES
Carlo Brugnoli
Universita di Modena
Tel: +39 02 5836 2537
Fax: +39 02 5836 2530
Carlo.brugnoli@ uni-bocconi.it
The existence of a strong venture capital industry is crucial for the development of new,
innovative companies and for maintaining a high level of flexibility and innovation of an
economic system.
The study of the development of the venture capital industry and of venture
capital companies has shown that there are:
1. some key factors crucial for the start-up and development of venture capital
companies;
2. some positive loops pushing their development;
3. some loops limting their growth.
After presenting a strategic analysis of the venture capital industry and of venture
capital companies, the paper utilize a "resource based" approach identifying:
1. the critical "stocks" (resources) on which a venture capital company can
base its development;
2. the critical loops feeding these stocks of resources;
3. the typical loops limiting the development of the company.
The paper can be useful for top managers of v.c. companies (to re-think their
companies from a "resource based" perspective and to reconsider the dynamics
that could drive their companies to success or failure) and to senior managers
of companies of any industry (to reconsider the strategy of their own
companies
