The existing literature on VC strategy is scarce. The reasons for such dearth of research on VC strategy are seemingly that while VCs may occasionally comment on strategic issues (Gupta, 2005) and a few researchers have examined the subject (Robinson, 1987; King, 2008), we do not actually have a theory (or even a suitable taxonomy) explaining the differences in VC strategizing. Furthermore, we do not know whether more generic classifications of strategic types, for instance, Snow and Mile’s (1968) identification of key strategic postures - prospectors, analyzers, defenders and reactors - or Porter’s (1980) distinction between cost leadership, differentiation and focus as the three generic strategies and his emphasis on consistency (similar to “reactors,” inconsistent firms tend to get “stuck in the middle”) are applicable to VCs’ strategizing.
Khanin, Dmitry and Turel, Ofir
"WHAT ARE VENTURE CAPITALISTS’ STRATEGIC POSTURES? (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 29
, Article 7.
Available at: http://digitalknowledge.babson.edu/fer/vol29/iss3/7