How does heterogeneity in experience influence the performance of nascent venture teams?: Insights from the US PSED II study

•We investigate performance effects of heterogeneities in experience type for nascent venture teams•We concentrate on management, industry, and start-up experience•Heterogeneity of experience benefits nascent venture team's performance•Heterogeneous teams often outperform teams comprising only experienced team members

Experience is a critical factor in the success of nascent venture teams. However, homogeneous experience levels within teams may have drawbacks. This study focuses upon the performance effects of heterogeneities in experience type – management, industry, and start-up experience – for nascent venture teams. Using the representative US-based PSED II dataset including 519 nascent venture teams, we find that balanced experience types (heterogeneities in management and start-up experience) among nascent venture team members led to increased early-stage performance (measured as the expected revenue after the first operational year and the progress in terms of entrepreneurial activities pursued within the first five years of operation).