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The entrepreneur's choice of a venture capital firm: Empirical evidence from two VC fund portfolios

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  • Andrieu, Guillaume
  • Staglianò, Raffaele

Abstract

We examine the determinants of entrepreneurs’ choices between an independent and a bank-affiliated venture capital firm operating in the same region of France. We find empirical support for a significant impact of the firm's support quality and the venture's liquidation value.

Suggested Citation

  • Andrieu, Guillaume & Staglianò, Raffaele, 2016. "The entrepreneur's choice of a venture capital firm: Empirical evidence from two VC fund portfolios," Finance Research Letters, Elsevier, vol. 17(C), pages 141-145.
    • Handle: RePEc:eee:finlet:v:17:y:2016:i:c:p:141-145
    DOI: 10.1016/j.frl.2016.03.008
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    References listed on IDEAS

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    1. Black, Bernard S. & Gilson, Ronald J., 1998. "Venture capital and the structure of capital markets: banks versus stock markets," Journal of Financial Economics, Elsevier, vol. 47(3), pages 243-277, March.
    2. Guillaume Andrieu & Alexander Groh, 2012. "Entrepreneurs' Financing Choice between Independent and Bank-Affiliated Venture Capital Firms," Post-Print hal-02312825, HAL.
    3. Sahlman, William A., 1990. "The structure and governance of venture-capital organizations," Journal of Financial Economics, Elsevier, vol. 27(2), pages 473-521, October.
    4. Douglas Cumming, 2006. "Adverse Selection and Capital Structure: Evidence from Venture Capital," Entrepreneurship Theory and Practice, , vol. 30(2), pages 155-183, March.
    5. Thomas Hellmann & Laura Lindsey & Manju Puri, 2008. "Building Relationships Early: Banks in Venture Capital," The Review of Financial Studies, Society for Financial Studies, vol. 21(2), pages 513-541, April.
    6. Andrieu, Guillaume & Groh, Alexander Peter, 2012. "Entrepreneurs' financing choice between independent and bank-affiliated venture capital firms," Journal of Corporate Finance, Elsevier, vol. 18(5), pages 1143-1167.
    7. repec:bla:jfinan:v:59:y:2004:i:5:p:2177-2210 is not listed on IDEAS
    8. Rajan, Raghuram G, 1992. "Insiders and Outsiders: The Choice between Informed and Arm's-Length Debt," Journal of Finance, American Finance Association, vol. 47(4), pages 1367-1400, September.
    9. Guillaume Andrieu, 2013. "The Impact Of The Affiliation Of Venture Capital Firms: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 234-246, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Ameeta Jaiswal-Dale & Fanny Simon-Lee & Giovanna Zanotti & Peter Cincinelli, 2022. "The Role of Social Networking in Capital Sourcing," Global Business Review, International Management Institute, vol. 23(2), pages 247-258, April.

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    More about this item

    Keywords

    Venture capital; Entrepreneurial finance; Banking;
    All these keywords.

    JEL classification:

    • 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

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