What do entrepreneurs pay for venture capital affiliation?

• 成果类型: Article
• 署名作者: Hsu, DH
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2004.00680.x
• 发表日期: 2004
• 页码: 1805-1844
• 关键词: Certification; MARKET

摘要

This study empirically evaluates the certification and value-added roles of reputable venture capitalists (VCs). Using a novel sample of entrepreneurial start-ups with multiple financing offers, I analyze financing offers made by competing VCs at the first professional round of start-up funding, holding characteristics of the start-up fixed. Offers made by VCs with a high reputation are three times more likely to be accepted, and high-reputation VCs acquire start-up equity at a 10-14% discount. The evidence suggests that VCs' ''extra-financial value may be more distinctive than their functionally equivalent financial capital. These extra-financial services can have financial consequences.