Monitoring, mentoring and nurturing value in government venture capital entrepreneur development programmes

Purpose: This research explores the provision of monitoring, mentoring and nurturing in a government venture capital (GVC) entrepreneur development programme and how these activities might create value for high potential startups (HPSUs). Design/methodology/approach: A qualitative in-depth case study pursued the research question – how does GVC entrepreneur development programme provision of non-financial monitoring, mentoring and nurturing create value for HPSU businesses? The paper uses quasi-random sampling of case entrepreneurs selected from publicly available lists of HPSUs and interviews with entrepreneurs, employees and co-founders, in tandem with reviewing HPSU documentation. Findings: Findings highlight monitoring, mentoring and nurturing create value for HPSU entrepreneurs, and that GVC entrepreneur development programmes offer greater value to HPSUs than GVC investment alone. Programme activities build capacity by skills acquisition, access to a variety of external experts in non-technical business functions plus national and international private VC networks. Research limitations/implications: This study provides evidence that robust monitoring, mentoring and nurturing activities of a GVC entrepreneur development programme creates entrepreneur readiness for private investor engagement. Practical implications: This research highlights the influence of monitoring, mentoring and nurturing activities on HPSU entrepreneurs embedded in a GVC entrepreneur development programme. HPSUs seem better prepared for investor interactions by considering “non-monetary needs” in their funding strategies. Originality/value: The findings illustrate how a GVC entrepreneur development programme can positively impact GVC-entrepreneur influence and outcomes. In offering an in-depth case study of better practice, we extend prior literature on how GVCs can help bridge the equity gap by providing value adding non-financial supports, without creating a false VC market where GVCs crowd out private investors.