Friends or foes? The interrelationship between angel and venture capital markets
| Autor: | Thomas Hellmann, Veikko Thiele |
|---|---|
| Rok vydání: | 2015 |
| Předmět: |
Finance
Entrepreneurship Economics and Econometrics 050208 finance Social venture capital business.industry Financial economics Strategy and Management 05 social sciences Pre-money valuation Venture capital Seed money Legal protection Accounting Search model 0502 economics and business Economics Business 050207 economics Valuation (finance) |
| Zdroj: | Journal of Financial Economics. 115:639-653 |
| ISSN: | 0304-405X |
| Popis: | 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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