Changing the Business Model: Effects of Venture Capital Firms and Outside CEOs on Portfolio Company Performance

This study extends extant research on business model change by examining the impact of venture capital firms ( VCFs ) on the performance of young ventures that have substantially changed their business model. The analysis, using a unique dataset of 163 venture capital‐backed portfolio companies ( PFCs ), reveals a positive relationship between the scope of VCF involvement and PFC performance. Furthermore, the VCFs ' experience with business...