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Early Individual Stakeholders, First Venture Capital Investment, and Exit in the UK Startup Ecosystem

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  • Albert Banal-Estañol
  • Inés Macho-Stadler
  • Jonás Nieto-Postigo
  • David Pérez-Castrillo

Abstract

We analyze the effects of the pre-institutional individual stakeholders on the eventual success of the startups. We show that the quantity and experience of founding and non-founding directors and other individual investors affect the startup's type of, and value at, exit. While for founding and non-founding directors it is the number, for the other individual investors it is the presence of experienced business angels that significantly influences success. We also report indirect effects of the same pre-institutional individual stakeholder attributes on success. Indeed, they also affect the characteristics of the first venture capital investors, which in turn influence success.

Suggested Citation

  • Albert Banal-Estañol & Inés Macho-Stadler & Jonás Nieto-Postigo & David Pérez-Castrillo, 2019. "Early Individual Stakeholders, First Venture Capital Investment, and Exit in the UK Startup Ecosystem," Working Papers 1127, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1127
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    More about this item

    Keywords

    startups; venture capital; founders; individual investors;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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