This research examines how startup founders' academic knowledge, and knowledge gained through startup founding experience, signal investors and attract investments. We further examine, for both financed and non-financed startups, whether these signals are associated with the startup's...

Using a newly constructed database on VC investments in Israel between the years 1990-2008, this paper documents a division of labor between local VCs and foreign VCs such that local VCs invest in early stages of the company and foreign VCs invest in later stages. This difference is moderated...