What Matters in Venture Capital: Evidence From Entrepreneurs’ Stated Preferences
(2010) In Financial Management 39(4). p.1367-1401- Abstract
- We study how entrepreneurs evaluate the ability of different US venture capitalists (VCs) to add value to start-up companies. Analyzing a large data set of entrepreneurs’ stated preferences regarding VCs, we demonstrate that entrepreneurs view independent partnership VCs more favorably than other VC types (e.g., corporate, financial, and government sponsored VCs). Although entrepreneurs are able to correctly identify VCs with better track records, they do not believe them to be more desirable investors. We also find that an entrepreneur's rankings are affected by their overall exposure to VCs, emphasizing the role of experiential learning in the venture capital market.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/3629068
- author
- Bengtsson, Ola LU and Wang, Frederick
- organization
- publishing date
- 2010
- type
- Contribution to specialist publication or newspaper
- publication status
- published
- subject
- keywords
- Venture Capital, Entrepreneurship
- categories
- Popular Science
- in
- Financial Management
- volume
- 39
- issue
- 4
- pages
- 1367 - 1401
- publisher
- Wiley-Blackwell
- external identifiers
-
- scopus:78650069726
- ISSN
- 0046-3892
- DOI
- 10.1111/j.1755-053X.2010.01116.x
- language
- English
- LU publication?
- yes
- id
- c4ba3217-528d-4f3b-9716-e98db22ccec1 (old id 3629068)
- alternative location
- http://onlinelibrary.wiley.com/doi/10.1111/j.1755-053X.2010.01116.x/full
- date added to LUP
- 2016-04-01 14:28:16
- date last changed
- 2022-01-28 00:46:26
@misc{c4ba3217-528d-4f3b-9716-e98db22ccec1, abstract = {{We study how entrepreneurs evaluate the ability of different US venture capitalists (VCs) to add value to start-up companies. Analyzing a large data set of entrepreneurs’ stated preferences regarding VCs, we demonstrate that entrepreneurs view independent partnership VCs more favorably than other VC types (e.g., corporate, financial, and government sponsored VCs). Although entrepreneurs are able to correctly identify VCs with better track records, they do not believe them to be more desirable investors. We also find that an entrepreneur's rankings are affected by their overall exposure to VCs, emphasizing the role of experiential learning in the venture capital market.}}, author = {{Bengtsson, Ola and Wang, Frederick}}, issn = {{0046-3892}}, keywords = {{Venture Capital; Entrepreneurship}}, language = {{eng}}, number = {{4}}, pages = {{1367--1401}}, publisher = {{Wiley-Blackwell}}, series = {{Financial Management}}, title = {{What Matters in Venture Capital: Evidence From Entrepreneurs’ Stated Preferences}}, url = {{http://dx.doi.org/10.1111/j.1755-053X.2010.01116.x}}, doi = {{10.1111/j.1755-053X.2010.01116.x}}, volume = {{39}}, year = {{2010}}, }