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Who are the active investors? Evidence from venture capital

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Author Info

  • Bottazzi, L.
  • Da Rin, M.

    (Tilburg University)

  • Hellmann, T.

Abstract

This paper examines the determinants and consequences of investor activism in venture capital. Using a hand-collected sample of European venture capital deals, it shows the importance of human capital. Venture capital firms with partners that have prior business experience are more active recruiting managers and directors, helping with fundraising, and interacting more frequently with their portfolio companies. Independent venture capital firms are also more active than 'captive' (bank-, corporate-, or government-owned) firms. After controlling for endogeneity, investor activism is shown to be positively related to the success of portfolio companies.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-305977.

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Date of creation: 2008
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Publication status: Published in Journal of Financial Economics (2008) v.89, p.488-512
Handle: RePEc:ner:tilbur:urn:nbn:nl:ui:12-305977

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Web page: http://www.tilburguniversity.edu/

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