Existing literature suggests that entrepreneurs with prior firm-founding experience have moreskills and social connections than novice entrepreneurs. Such skills and social connectionscould give experienced founders some advantage in the process of raising venture capital.This paper uses a large...

Informed capital is a crucial ingredient to a well-functioning market for start-upfinance, especially in times of difficult market conditions. For bank-basedsystems, the question regarding which investors actually supply informed capitalhas not yet been answered. To fill this gap, we conduct a...

Purpose: This study aims to analyze the contribution of business angels (BAs), defined as wealthy individuals who provide risk capital to entrepreneurial firms without family connections, in Estonia, an emerging country in Eastern Europe. Design/methodology/approach: This study compared the data...

We discuss how Contingent Payment Mechanisms (also known as Contingent Earn-Outs) enable of Entrepreneurial Financing decisions. First, we introduce a taxonomy of contingent payment mechanisms, by combining features regarding their term and amount. Second, we introduce each of these alternative...

This study empirically evaluates the price impact of agency risk in firm valuation. Using aunique data set comprised of internal valuation documents, we find that venture capitalistsuse risk discounts to cope with expected agency risks...

The start-up team plays a key role in venture capitalists’ evaluations of venture proposals. Ourfindings go beyond existing research, first by providing a detailed exploration of VCs’ team evaluationcriteria, and second by investigating the moderator variable of VC experience. Our results...

This paper extends recent research studying biases in venture capitalist’s decision-making. Wecontribute to this literature by analyzing biases arising from similarity between a venture capitalist andmembers of a venture team. We summarize the psychological foundations of such similarity...

This paper analyzes the relationship between management support offered by venture capitalfirms and the performance of entrepreneurial start-ups. An empirical investigation of a sampleof 129 German start-up companies leads to interesting results: Contrary to commonly statedbeliefs management...

Investment trajectories of new enterprises are a largely neglected but important issue of new firms' business behavior. This paper debuts in showing robust evidence of new venture investment time patterns by using investment time series of 4.733 new businesses. Based on a fixed effects nonlinear...