We explain the coexistence of different financiers like Venture Capital (VC) and Angel investors and study the role of policymakers in promoting innovation. VC investors are better informed. However, Angel investors offer entrepreneurs a better avenue to capture entrepreneurs' motivational...

We present theory and evidence on the careers of high-tech entrepreneurial founders prior to obtaining venture capital (VC), and after VC exit. Prior to obtaining VC, entrepreneurs may have started other ventures, worked as a salaried employee in a startup, or worked for a large company. Upon VC...

Venture capital, angel financing, and crowdfunding have evolved and matured in the entrepreneurial finance market. These market developments have also been accompanied by a growing body of research. In this paper, we provide an overview of a vast body of literature in the field of...

We analyze the roles of entrepreneurs, venture capitalists (VC), and the government in financing fundamental innovations, defined as those with positive social value net of development costs, but negative net present values to innovating firms. We first analyze the case where the entrepreneur,...

There is an established body of research that has examined the value-added provided by venture capitalists for their portfolio companies. More recent work has started to look at the comparable activities of corporate venture capitalists. However, to date, the value-added provided by these two...

Using a novel dataset of 149 early stage start-up firms, I empirically examine how prior entrepreneurial founding experience affects the timing and valuation of venture capital (VC) funding. Such founding experience results in both enhanced skill in building current start-ups and in improved...

Most studies on entrepreneurs' networks incorporate social capital and networks as independent variables that affect entrepreneurs' actions and its outcomes. By contrast, this article examines social capital of the Chinese and Russian entrepreneurs and venture capitalists as dependent variables,...

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...