This study develops a general equilibrium model within which self revelation of ability - that is not accompanied by any signaling - is compatible with arrival at rational expectations equilibriums (REE). In the model, economic agents either are 'confident', 'overconfident', or 'under-confident'...

The VCT scheme offers large tax breaks (worth around 38.4% of the amount subscribed) to encourage UK taxpayers to invest in start-up companies. Taking account of deadweight and other effects, the scheme currently costs close to £1 in tax subsidies per additional £1 invested in eligible venture...

This study aims to analyze what criteria are used by Venture Capital (VC) firms to value Indonesian tech startups as high-flyer investments. We define high-flyer investment here as start-ups projected to generate a return five times or more than its initial investment. We evaluated what criteria...

Trust is an important determinant of start-up financing. In a simple agentbased model it is determined what the best trusting strategy is for a collective of investors and whether it is rational for an individual investor to deviate from this collective optimum. Trust depends on a measure of...

With an overall lack of gender and ethnic diversity in the innovation sector documented in Gompers and Wang (2017), we ask the natural next question: Does increased diversity lead to better firm performances? In this paper, we attempt to answer this question using a unique dataset of the gender...

This paper sheds light on the significant role of networks, particularly alumni networks, in venture capital markets. I leverage the instance of a new partner, carrying new alumni networks, entering a venture capital firm as a plausible exogenous shock to the VC's alumni networks. This...

This paper sets out to analyze the influence of different types of venture capitalists on the performance of their portfolio firms around and after IPO. We investigate the hypothesis that different governance structures, objectives, and track records of different types of VCs have a significant...

This paper aims to analyze the impact of different types of venture capitalists on the performance of their portfolio firms around and after the IPO. We thereby investigate the hypothesis that different governance structures, objectives and track record of different types of VCs have a...

External finance is central for nascent entrepreneurs, people in the process of starting new ventures. We argue that nascent entrepreneurs use patents and prototypes in order to signal their ability to appropriate the returns from their innovation as well as the project´s feasibility. Our...

External finance is central for nascent entrepreneurs, people in the process of starting new ventures. We argue that nascent entrepreneurs use patents and prototypes in order to signal their ability to appropriate the returns from their innovation as well as the project's feasibility. Our...