FRONTIERS OF E-BUSINESS RESEARCH 2003 408 ISSUES OF SOCIAL CAPITAL AND TRUST IN GROWTH COMPANIES Jussi Okkonen Senior Researcher Tampere University of Technology jussi.okkonen@tut.fi Harri Melin Professor University of Turku harri.melin@utu.fi Marko Seppä Director eBRC marko.seppa@tut.fi Maria Toyoda Professor Villanova University amaria.toyoda@villanova.edu Abstract The role of venture capitalists is significant when ideas, or ventures, are developed to new companies. Moreover, to make ventures and venture capital meet there is also niche for venture-to-capital (V2C) operative. The network of mutual and organisational relationships consisting of (i) entrepreneurs or venturers, (ii) V2C operatives or venture knowledgists, and (iii) venture capital operatives or venture capitalists form an activity system based on social capital and mutual trust. These three groups are the key stakeholders of the growth company process. In the context of the growth company process, social capital should be taken in account as sum of more or less institutionalised relationships of mutual acquaintance and recognition or network of social exchanges between operatives or actors engaging in transactions. Moreover the three dimensions of social capital affecting any actor in that process are structural, i.e. presence or absence of interaction, dimensional, i.e. mutual trust and trustworthiness, and cognitive, i.e. shared understanding of common goals and proper ways to act. The aim of this paper is to discuss the role of social capital in growing ventures from the perspectives of main stakeholders, i.e. venturer, venture knowledgists, venture capitalist and society. Contributions focus on approaching growth venture as an activity, and on the manifestations of social capital and trust as assets and driving forces of new businesses. Keywords Social capital, Venture-to-Capital