Advanced Search
MyIDEAS: Login to save this paper or follow this series

Investor type and new-venture governance:cognition vs. interest alignment

Contents:

Author Info

  • Christophe Bonnet

    ()
    (Grenoble Ecole de Management)

  • Peter Wirtz

    ()
    (Université de Lyon 2 - COACTIS)

Abstract

We study the specific rationale governing entrepreneur-investor relations in young ventures which raise equity capital from different investor types in pursuit of a strong growth strategy. Special emphasis is put on the governance process through which investors and entrepreneurs interact in a complex setting, where an entrepreneur faces at least two distinct investor types (business angels and venture capitalists). We do so in an effort to capture the specific role and impact of each for venture dynamics, trying to reach beyond static descriptions of entrepreneurs’ and investors’ characteristics. To this end, we set up a prospective case study (Bitektine, 2008). We actually use the case of a young growth venture in the process of raising external equity from angel investors and venture capitalists to test the relevance of two conflicting theories of venture governance. The study design has been set up to answer the following question: What is the dominant logic behind the governance of entrepreneur-investor interactions at an early stage in the growth process? Is it mainly driven by considerations of personal interest, as agency theory would have it, or does entrepreneurial and investor cognition play a dominant role?

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://leg.u-bourgogne.fr/images/stories/wp/1100704.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations in its series Working Papers CREGO with number 1100704.

as in new window
Length: 28 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:dij:wpfarg:1100704

Contact details of provider:
Postal: 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France

Order Information:
Postal: Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France
Email:

Related research

Keywords: business angel; venture capital; governance; agency theory; cognition; prospective case study.;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dij:wpfarg:1100704. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angèle RENAUD).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.