When Venture Capitalists Clash: Exploring the Impact of Ownership and Status Mismatch on New Venture Growth

This study investigates the impact of power source mismatch of venture capital syndication on the growth performance of new ventures, considering their corporate governance and institutional environment. Using data from listed companies in the small and medium enterprises market in China, we find that ownership-dominated power source mismatch in venture capital syndication enhances new venture growth performance, while status-dominated power source mismatch has the opposite effect. Additionally, the positive performance impact of ownership-dominated power source mismatch is amplified when the venture capital firm with the highest ownership power joins the board and when the new venture is headquartered in a province with a higher degree of marketization.