Angels and venture capitalists: Substitutes or complements?
| Autor: | Dan H. Vo, Paul Schure, Thomas Hellmann |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Finance
040101 forestry Economics and Econometrics Social venture capital 050208 finance Casual business.industry Strategy and Management 05 social sciences Instrumental variable 04 agricultural and veterinary sciences Monetary economics Venture capital GeneralLiterature_MISCELLANEOUS Entrepreneurial finance Seed money Tax credit Accounting 0502 economics and business 0401 agriculture forestry and fisheries Business Accredited investor 050203 business & management |
| Zdroj: | Journal of Financial Economics. 141:454-478 |
| ISSN: | 0304-405X |
| Popis: | We analyze the funding of start-up companies across financing rounds, focusing on the dynamic interactions between angel investors and venture capitalists. Using unique data from British Columbia, Canada, we show that angels and venture capitalists are dynamic substitutes. This substitutes pattern applies across the performance range of companies. It is less pronounced for serial angels. An instrumental variable analysis, based on available investor tax credits, suggests that the substitutes pattern is driven by company characteristics. Overall, the evidence points to the existence of parallel streams of angel and venture capital funding, with fewer transitions between streams than is traditionally assumed. |
| Databáze: | OpenAIRE |
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