Investor Type, Cognitive Governance and Performance in Young Entrepreneurial Ventures: A Conceptual Framework
AbstractThis article contributes to a better understanding of the process of entrepreneurial finance from a behavioral perspective. We specifically examine the cognitive features and interaction of three key-actors in entrepreneurial finance: entrepreneurs, business angels and venture capitalists and derive implications for performance (value creation and growth) when a young venture raises external equity capital. Concepts of cognitive cost and value enhance theoretical insight into why BA and VC intervention is typically sequential. We also predict in what specific situations one should expect simultaneous coinvestment by BAs and VCs and how investors can use cognitive levers to influence the speed of growth.
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Bibliographic InfoPaper provided by HAL in its series Grenoble Ecole de Management (Post-Print) with number halshs-00642737.
Date of creation: 2011
Date of revision:
Publication status: Published, Advances in Behavioral Finance & Economics: The Journal of the Academy of Behavioral, 2011, 1, 1, 42-62
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Business Angel; Venture Capitalist; Cognitive Governance; Venture Growth;
Other versions of this item:
- Christophe Bonnet & Peter Wirtz, 2011. "Investor Type, Cognitive Governance and Performance in Young Entrepreneurial Ventures:A Conceptual Framework," Working Papers FARGO 1110301, Université de Bourgogne - Leg (laboratoire d'économie et de gestion)/Fargo (Research center in Finance,organizational ARchitecture and GOvernance).
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
- NEP-CSE-2011-12-13 (Economics of Strategic Management)
- NEP-ENT-2011-12-13 (Entrepreneurship)
- NEP-NEU-2011-12-13 (Neuroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marianne P. Bitler & Tobias J. Moskowitz & Annette Vissing-Jørgensen, 2005. "Testing Agency Theory with Entrepreneur Effort and Wealth," Journal of Finance, American Finance Association, vol. 60(2), pages 539-576, 04.
- Sapienza, Harry J. & Manigart, Sophie & Vermeir, Wim, 1996. "Venture capitalist governance and value added in four countries," Journal of Business Venturing, Elsevier, vol. 11(6), pages 439-469, November.
- Gérard Charreaux, 2002. "Au-delà de l'approche juridico-financière:le rôle cognitif des actionnaires et ses conséquences sur l'analyse de la structure de propriété et de la gouvernance," Working Papers FARGO 020701, Université de Bourgogne - Leg (laboratoire d'économie et de gestion)/Fargo (Research center in Finance,organizational ARchitecture and GOvernance), revised Jul 2002.
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