Informed Capital in a Hostile Environment: The Case of Relational Investors in Germany
AbstractInformed capital is a crucial ingredient to a well-functioning market for start-up finance, especially in times of difficult market conditions. For bank-based systems, the question regarding which investors actually supply informed capital has not yet been answered. To fill this gap, we conduct a survey among German suppliers of start-up finance. We find significant differences between the investors which are linked to banks and those financiers which are not. Although, the bankrelated group, including public equity suppliers, delivers some sort of informed capital, venture capital companies and Business Angels are the key providers of informed capital in the German market for start-up finance.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 549.
Length: 28 p.
Date of creation: 2006
Date of revision:
Informed capital; Start-up financing; Venture capital; Banks; Information;
Other versions of this item:
- Schäfer, Dorothea & Schilder, Dirk, 2006. "Informed capital in a hostile environment: the case of relational investors in Germany," Freiberg Working Papers 2006,03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-26 (All new papers)
- NEP-EEC-2006-02-26 (European Economics)
- NEP-FMK-2006-02-26 (Financial Markets)
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