Hellmann, Thomas; Thiele, Veikko - In: Journal of Financial Economics 115 (2015) 3, pp. 639-653
This paper develops a theory of how angel and venture capital markets interact. Entrepreneurs first receive angel then venture capital funding. The two investor types are ‘friends’ in that they rely upon each other׳s investments. However, they are also ‘foes,’ because at the later stage...