Analysis and investigation of control and governance of venture capitalists for innovative companies through non-financial value creation mechanisms

In their interaction with startup companies, venture capitalists play a role beyond providing financial resources for these companies and create value for them. The present research, using a case study method, investigated six venture investments made in the period (1393-1400) through 23 semi-structured interviews with people active in venture capital and startup companies, and the mechanisms of creating non-financial values and control and governance methods. It has been analyzed using qualitative content analysis of interviews and axial coding. The results of this research show that the creation of non-financial values of venture capitalists is generally done through six mechanisms with general external and internal approach. There are two general approaches in the control and governance of venture capitalists. In a venture investor approach, through its representative on the board of directors of the statrup company, it follows its goals and expectations and leaves the company with complete independence and authority in executive matters and how to achieve the goals. In another way of control and governance, the venture capitalist operates somewhat similar to holding companies, through active participation in the company's planning process and control and monitoring of the company's performance through regular monthly meetings. It minimizes management conflicts.