VENTURE CAPITALISTS' INVOLVEMENT AND THE SURVIVAL OF HIGH TECHNOLOGY NEW VENTURES
Investors and CEOs face an important challenge in managing the tension between governance and cooperation. Following the agency and resource dependency theories this research examines how board size and decision-making based on investor power and CEO persuasion affect the survival of high technology new ventures (HTNVs). We use a sample of 179 venture capital backed HTNVs in Israel, 120 of them survived and 59 have failed. Our findings show that board decisions based on CEO persuasion have unexpectedly negative impact on venture survival while board decisions based on VC power are positively associated with survival. The interaction of these two factors yields a strong positive effect on venture survival. Implications are suggested to the literature of governance and decision-making in HTNVs along with lessons for practitioners.