The Dynamics of Advice Giving by Venture Capital Firms: Antecedents of Managerial Cognitive Effort

This study investigates what leads managers to allocate constrained cognitive effort toward new versus familiar aspects of a business. Specifically, we explore advice giving by venture capital firms (VCs) to their portfolio companies, distinguishing between business topics on which a VC has advised other ventures in the past and topics new to the VC that may be outside its areas of expertise. We use both demand-side (venture-driven) and...