Gender, Risk, and Venture Creation Intentions

Competition, Contracting, and Value Creation in Venture Capital Finance∗

We embed venture capital contracting in a search market environment where venture capitalists and entrepreneurs meet and bargain over optimal contracts. We find that both the composition and type of financial claims held by the venture capitalist and entrepreneur depend critically on the underlying market structure. In some cases both parties hold a mix of debt and equity while in others only o...

Regional Opportunities and Policy Initiatives for New Venture Creation

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The New Venture Creation Process: How Nascent Entrepreneurs Behave When Forming a New Venture

The risk and return of venture capital

This paper measures the mean, standard deviation, alpha, and beta of venture capital investments, using a maximum likelihood estimate that corrects for selection bias. The biascorrected estimation neatly accounts for log returns. It reduces the estimate of the mean log return from 108% to 15%, and of the log market model intercept from 92% to 7%: The selection bias correction also dramatically ...

The Use and Effect of Social Capital in New Venture Creation – Solo Entrepreneurs vs. New Venture Teams

This paper examines the use of social capital in the venture creation process. We compare solo entrepreneurs (n=182) and new venture teams (n=274) from a random sample of start-ups in innovative industries and test social capital use and its effects on firm performance. Our results reveal that solo entrepreneurs and new venture teams do not differ in their degree of use of social capital. Howev...