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Squaring Venture Capital Valuations with Reality
Gornall, Will - 2017
We develop a valuation model for venture capital-backed companies and apply it to 135 U.S. unicorns – private companies with reported valuations above $1 billion. We value unicorns using financial terms from legal filings and find reported unicorn post-money valuation average 50% above fair...
Persistent link: https://www.econbiz.de/10012946036
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Patent Collateral, Investor Commitment, and the Market for Venture Lending
Hochberg, Yael V. - 2016
The use of debt to finance risky entrepreneurial-firm projects is rife with informational and contracting problems. Nonetheless, we document widespread lending to startups in three innovation-intensive sectors and in early stages of development. At odds with claims that the secondary patent...
Persistent link: https://www.econbiz.de/10013005794
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Friends or Foes : The Interrelationship between Angel and Venture Capital Markets
Hellmann, Thomas F. - 2014
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 the...
Persistent link: https://www.econbiz.de/10013053483
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Kill Zone
Kamepalli, Sai Krishna; Rajan, Raghuram G.; Zingales, Luigi - 2022
We study why acquisitions of entrant firms by an incumbent can deter innovation and entry in the digital platform industry, where there are strong network externalities and some customers face switching costs. A high probability of an acquisition induces some potential early adopters to wait for...
Persistent link: https://www.econbiz.de/10013298326
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Be Careful What You Ask for : Fundraising Strategies in Equity Crowdfunding
Hellmann, Thomas F. - 2019
We use equity crowdfunding data to ask how fundraising amounts can be explained by what entrepreneurs ask for, versus … what investors want to invest. The analysis exploits unique features of crowdfunding where entrepreneurs not only set …
Persistent link: https://www.econbiz.de/10012862841
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Some Simple Economics of Crowdfunding
Agrawal, Ajay K. - 2014
, the recent rise of crowdfunding - raising capital from many people through an online platform - which offers little … initially startling. On the eve of launching equity-based crowdfunding, a new market for early-stage finance in the U.S., we … transaction costs, reputation, and market design, can explain the rise of non-equity crowdfunding and offer a framework for …
Persistent link: https://www.econbiz.de/10013063674
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Social Finance
Kuchler, Theresa; Stroebel, Johannes - 2022
We review an empirical literature that studies the role of social interactions in driving economic and financial decision making. We first summarize recent work that documents an important role of social interactions in explaining household decisions in housing and mortgage markets. This...
Persistent link: https://www.econbiz.de/10013406071
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What are Firms? Evolution from Birth to Public Companies
Kaplan, Steven N. - 2014
We study how firm characteristics evolve from early business plan to initial public offering to public company for 49 venture capital financed companies. The average time elapsed is almost 6 years. We describe the financial performance, business idea, point(s) of differentiation, non-human...
Persistent link: https://www.econbiz.de/10012752543
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Entrepreneurial Spawning : Public Corporations and the Genesis of New Ventures, 1986-1999
Gompers, Paul A. - 2014
This paper examines the factors that lead to the creation of venture capital backed start-ups, a process we term entrepreneurial spawning.' We contrast two alternative views of the spawning process. In one view, employees of established firms are trained and conditioned to be entrepreneurs by...
Persistent link: https://www.econbiz.de/10012752716
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Is There a Role for Patents in the Financing of New Innovative Firms?
Hall, Bronwyn H. - 2018
It is argued by many that one of the benefits of the patent system is that it creates a property right to invention that enables firms to obtain financing for the development of that invention. In this paper, I review the reasons why ownership of knowledge assets might be useful in attracting...
Persistent link: https://www.econbiz.de/10012925903