Executive forum: How entrepreneurial company performance can be improved through venture capitalists' communication and commitment

Abstract We examine how venture capital firms (VCFs) can improve the performance of their portfolio companies (PFCs). We focus on the role of the communication between the VCF and PFC as well as within the VCF, and the role of the VCF's commitment to the PFC. We find that both communication and commitment have an important impact on VCFs' value-added contributions, and subsequently on entrepreneurial company performance. We show how the study's results can help practitioners to develop and assist successful entrepreneurial ventures.