Cabolis, Christos; DAI, MIAN; Serfes, Konstantinos - LeBow College of Business, Drexel University - 2014
We investigate the relationship between competition and firm specialization in the venture capital (VC) market. Staged … leads to stage specialization. Contrary to the conventional wisdom that competition always promotes specialization, we find … (with more promising business plans) receive greater utility. Competition shifts and rotates the utility schedule, which …