Common Ownership and Startup Growth
| Autor: | Ofer Eldar, Jillian Grennan, Katherine Waldock |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Finance
History Entrepreneurship Polymers and Plastics business.industry Corporate governance Common ownership Venture capital Investment (macroeconomics) Industrial and Manufacturing Engineering Shock (economics) Capital (economics) Business Business and International Management Initial public offering |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3406205 |
| Popis: | Many startups are commonly-held by the same venture capital (VC) investors. We exploit the staggered introduction of liability exemptions when investors hold stakes in conflicting business opportunities as a shock to common ownership. We find increases in common ownership and directors serving on rivals' boards after the law changes. Despite the potential for rent-extraction, commonly-held startups benefit by raising more capital through more investment rounds. Moreover, they are less likely to fail and exit more successfully through IPOs or acquisitions by another commonly-held startup. These successful startup outcomes are linked to VC directors serving on other startup boards. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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