The study of organizational change has a long tradition in organizational research (e.g., Boeker, 1997; Greve, 1999; Beck, Bruderl and Woywode, 2008). Yet, a business model (BM) change as a distinct type of organizational change (Amit and Zott, 2001, 2007) has received scarce attention. BM change has special relevance to entrepreneurial ventures as they often go through dramatic changes in their routines as they search for the appropriate market niche (Wiersema and Bantel, 1993), or seek to acquire new knowledge for the repositioning of their products (Carroll, Dobrev and Swaminathan, 2002). The underline premise of our study is that interfirm relationships may be instrumental in how entrepreneurs implement business model change. We use a knowledge-based perspective (Cohen and Levinthal, 1990; Grant, 1996) to examine the impact of VCF’s experience with the business model change and the direct and moderating effect of the addition of top managers to PFC on the performance for ventures going through the business model change.