Using a sample of 2,373 unique capital contributions from 437 VCs over subsequent rounds into 961 start-ups during the period 1995-2005 in Germany we disentangle the circumstances under which lead VCs engage in syndicate relationships with partner VCs. The results indicate that syndication is...

This paper examines the effects of venture capital (VC) backing on the performance of listed companies on the Australian securities market. We examine measures of the IPO pricing, operational performance after the IPO and market performance after the IPO for a matched sample of VC and non...

This study provides evidence of significant biases in multi-year management forecasts by analyzing a proprietary dataset on venture-backed start-ups in Germany. We find that revenues and expenses are highly overestimated in each of the investigated one- to five-year-ahead planning periods....

We examine the dynamics of the positive sorting in the venture capital industry. Our findings indicate that switching lead VCs is not uncommon during the course of entrepreneurial firms' development. Companies with upwardly revised perceived quality are more likely to switch to more reputable...

Venture capital firms typically invest in portfolios of only a few highly correlated enterprises. From a diversification perspective this seems suboptimal. We analyze venture capital budgeting focusing on the venture capitalist's decision to invest in correlated enterprises. We provide...

The aim of this study is to analyze the returns of business angels' investments and their determinants. In this research the author wants to investigate the relationship existing between the performance of business angels investments and a series of explanatory variables widely used in the...

The term ‘investor relations' (IR) often refers only to the very formal and primarily anonymous relations and communication between publicly traded companies and their (potential) shareholders. Especially for young and not yet publicly traded companies (so-called start-ups), it can be shown...

Innovativeness of a start-up is regarded as a prerequisite to acquire venture capital. However, it is neither obvious how to conceptualize nor how to measure it. Even though start-up innovativeness is of high practical relevance, no empirical research on the topic exists. This article is a first...

In the presence of asymmetric information, economic agents need to communicate their quality to investors and other parties. While much of the literature focuses exclusively on signaling, we develop a conceptual framework that extends this view with elements of the literature on certification....

This paper examines the investments and performance of community development venture capital (CDVC). We find substantial differences between CDVC and traditional venture capital (VC) investments: CDVC investments are far more likely to be in nonmetropolitan regions and in regions with little...