The paper analyzes patterns in spatial proximity between venture capital investors and investees. We use a data set of 950 dyads of venture capitalists and German new ventures which have closed a financing round between January 2002 and March 2007. We are the first study to use minimum travel...

We survey 885 institutional venture capitalists (VCs) at 681 firms to learn how they make decisions across eight areas: deal sourcing; investment decisions; valuation; deal structure; post-investment value-added; exits; internal organization of firms; and relationships with limited partners. In...

Against the backdrop of an ever-changing financial landscape sometimes characterized by an abundance of funding and start-up opportunities, but usually characterized by down rounds and decreasing valuations (leading to funding, investment and liquidity gaps), “venture capital” has taken on a...

Considering that the assumption of time consistency does not adequately reveal the mechanisms of exit decisions of venture capital (VC), this study proposes two kinds of time-inconsistent preferences (i.e., time-flow inconsistency and time-point inconsistency) to advance research in this field....

The Jumpstart Our Business Startups (“JOBS”) Act of 2012 intends to “help entrepreneurs raise the capital they need to put Americans back to work and create an economy that's built to last.” The goal is to “democratize startups” by making capital available to diverse entrepreneurs in...

The paper analyzes patterns in spatial proximity between venture capital investors and investees. We use a dataset of 1256 dyads of venture capitalists and German new ventures which have closed a financing round between January 2002 and March 2007. Our results indicate that different factors...

We analyze governance with a new dataset on investments of venture capitalists in 3848 portfolio firms in 39 countries from North and South America, Europe and Asia spanning 1971-2003. We provide evidence that cross-country differences in legality, including legal origin and accounting...

Based on 1182 dyads of venture capitalists and German portfolio companies involved in a financing round between 2002 and 2007, we examine the importance of spatial proximity between investors and investees in a dense economy. We find that the probability of a financing relationship decreases by...

This paper identifies a new motive for undertaking corporate spin-offs: a desire to pursue growth through M&A by using stocks of the spun-off firm as an acquisition currency. We find that spun-off firms make frequent acquisitions beginning in the year of the spin-off. Over a five-year horizon, a...

Previous studies have argued that entrepreneurs earn less and bear more risk than salaried workers with otherwise similar characteristics. In a simple model of entrepreneurship, I show that estimates of mean and variance of returns to entrepreneurship used by these previous studies are biased,...