In this paper we aim at shedding light on the possible role played by BAs in influencing the effects of bank debt on the performances of the funded ventures. We assume that BAs might significantly reduce the agency costs of bank debt and foster a positive effect of debt on venture performance by...

This paper proposes and analyses a model of start-up investment. Innovative entrepreneurs are commercially inexperienced and can benefit from venture capital support. Only part of them succeed in matching with a venture capitalist while the rest must resort to standard bank finance. We consider...

The conventional wisdom has maintained that being in proximity to entrepreneurial ecosystems helps startups to raise financing, develop and grow. In this paper, we examine the effect of a major component of an entrepreneurial ecosystem-financial or venture capital clusters on the exit of a...