Friends or foes? The interrelationship between angel and venture capital markets

• 成果类型: Article
• 署名作者: Hellmann, Thomas; Thiele, Veikko
• 署名单位: University of Oxford; Queens University - Canada
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.10.009
• 发表日期: 2015
• 页码: 639-653
• 关键词: Entrepreneurship; Angel investors; venture capital; Start-ups; search

摘要

This paper develops a theory of how angel and venture capital markets interact. Entrepreneurs first receive angel then venture capital funding. The two investor types are 'friends' in that they rely upon each other's investments. However, they are also 'foes,' because at the later stage the venture capitalists no longer need the angels. Using a costly search model we derive the equilibrium deal flows across the two markets, endogenously deriving market sizes, competitive structures, valuation levels, and exit rates. We also examine the role of legal protection for angel investments. (C) 2014 Elsevier B.V. All rights reserved.