This study empirically evaluates the price impact of agency risk in firm valuation. Using aunique data set comprised of internal valuation documents, we find that venture capitalistsuse risk discounts to cope with expected agency risks...

This paper analyzes the relationship between management support offered by venture capitalfirms and the performance of entrepreneurial start-ups. An empirical investigation of a sampleof 129 German start-up companies leads to interesting results: Contrary to commonly statedbeliefs management...

The start-up team plays a key role in venture capitalists’ evaluations of venture proposals. Ourfindings go beyond existing research, first by providing a detailed exploration of VCs’ team evaluationcriteria, and second by investigating the moderator variable of VC experience. Our results...

This paper extends recent research studying biases in venture capitalist’s decision-making. Wecontribute to this literature by analyzing biases arising from similarity between a venture capitalist andmembers of a venture team. We summarize the psychological foundations of such similarity...

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...

Investment trajectories of new enterprises are a largely neglected but important issue of new firms' business behavior. This paper debuts in showing robust evidence of new venture investment time patterns by using investment time series of 4.733 new businesses. Based on a fixed effects nonlinear...

Entrepreneurs who deal with a venture capital firm (VC) for the first time often find themselves unprepared for the experience. The financing terms (deal structure), which specify the percentage of the firm's common stock that goes to the VC often require that the entrepreneur forfeit a large...

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...

Using a representative sample of entrepreneurs who are in the process of starting a business, this paper investigates the determinants of the preparation of financial statements and projections in start-up ventures. Consistent with predictions from information economics and contracting, I find...