This paper presents an empirical analysis of the role of trust in the relationship between venture capitalist and entrepreneur. Following the social sciences literature, we try to differentiate between trust as an affective, value-based category from confidence which is understood as a...

Capital market frictions and especially asymmetric information pose significantproblems concerning the financing of young growth companies. I first blind outthe existence of any intermediaries and use this simplified situation to systematicallyshow these financing problems and relate them to...