The Impact Of Post-investment Involvement On Startups’ Entrepreneurial Orientation

Getting the favor of venture capital is the key to the further development of start-up companies.Start-ups are as if the infant baby,whether its capital chain,product,or business model,management systems are not perfect,they all need support and help in all aspects of venture capital institutions.In 1985,Chinese first venture capital company,China New Technology Venture Capital Company(referred to as "Zhongchuang Company")was established in Beijing.Since then,Chinese venture capital has gone through more than 20 years of development.In recent years,somesubstantive progress has also been made,providing tremendous support forthe national Strategy of "Double Creations".However,compared with developed venture capital abroad,it is still in its infancy,with small scale and obvious post-investment management.The phenomenon of "throwing and ignoring","incurring chaos after casting" and "shooting and casting at the side" have long been commonplace.In addition,many scholars analyze the role of venture capital in national economic development,the operational mechanism of venture capital,research on policy environment,etc.from a relatively macro perspective.However,viewing from a relatively micro perspective,the research on how venture capital affects start-up companies(especially the influence on entrepreneurial orientation)is still lacking.It fails to provide certain management inspiration and guidance for reality.Therefore,based on the actual situation of post-investment management and the management theory background,after reviewing a large number of literatures and works on venture capital and start-ups,this paper tries to discuss the impact of post-investment management of venture capital on entrepreneurial orientation(hereinafter referred to as EO)of start-up companies and the regulatory role of trust relationship between the two parties in this process from the microscopic perspective of management science.Drawing on previous research,this paper divides post-investment management into two dimensions:Monitoring and Value-added Services(including network resource support,follow-up financing support,strategic support,and management support).The EO is divided into three dimensions:innovativeness,proactiveness and risk-taking.This study constructs a conceptual model of the study and proposes 8 hypotheses accordingly.Then the hypothesis model is empirically tested through questionnaires.The results show that 7 hypotheses have been validated,only 1 hypotheses have not been verified,and the hypotheses that have not passed verification have been analyzed and discussed.Based on the research conclusions,reasonable management implications are proposed.The main conclusions of this study are as follows:(1)The monitoring of venture capital institutions significantly negatively influences EO of startups;(2)The value-added services provided by venture capital to start-up companies have a significant positive impact on their innovation;(3)Value-added services have a significant positive impact on the risk exposure of start-up companies.That is,the more value-added services provided by venture capital to start-up companies,the greater their willingness to take risks;(4)The relationship of trust between venture capital institutions and start-ups does not play a significant role in the negative adjustment between monitoring and EO.The trust relationship between venture capital institutions and start-ups can amplify the positive role of value-added services after investment.