Early stage venture capital investing: comparing California and Scandinavia

While venture capital has become a global phenomenon, our knowledge about regional differences in venture capitalist (VC) behavior is quite poor. Most cross-regional comparisons have been quantitative replications of US based studies, which has made it difficult to discern qualitative differences. To help remedy this situation, we conducted semi-structured interviews with altogether 12 early stage VCs in California and Scandinavia. The results, which are presented in some detail, reveal substantial differences in VC activities and priorities during deal flow generation, investment, post-investment involvement, and exit. Taking a cue from these specific findings, we conclude by suggesting that VCs can be conceived of as fulfilling three ideal typical roles as investors, coaches and partners. Since they imply quite different modes of engaging with portfolio companies, it is also suggested that these roles -- while based on a limited sample -- may be useful for discriminating between VCs also in other settings.