Artikel
The Equilibrium Size and Value‐Added of Venture Capital
I model positive sorting of entrepreneurs across the high and low value-added segments of the venture capital market. Aiming to attract high-quality entrepreneurs, inefficiently many venture capitalists (VCs) commit to provide high value-added by forming small portfolios. This draws the marginal entrepreneur away from the low value-added segment, reducing match quality in the high value-added segment too. There is underinvestment. Multiple equilibria may emerge, and they differ in aggregate investment. The model rationalizes evidence on VC returns and value-added along fundraising “waves” and when the cost of entrepreneurship falls, and generates untested predictions on the size and value-added of venture capital.
- Language
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Englisch
- Bibliographic citation
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Journal: The Journal of Finance ; ISSN: 1540-6261 ; Volume: 79 ; Year: 2024 ; Issue: 2 ; Pages: 1297-1352 ; Hoboken, NJ: Wiley
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Sannino, Francesco
- Event
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Veröffentlichung
- (who)
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Wiley
- (where)
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Hoboken, NJ
- (when)
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2024
- DOI
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doi:10.1111/jofi.13313
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Sannino, Francesco
- Wiley
Time of origin
- 2024
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Non-financial value-added of venture capital: A comparative study of different venture capital investors
The perceived value-added of venture capital investors: Evidence from Finnish biotechnology industry
Different types of venture capital investors and value-added to high-tech portfolio firms
Value-added taxation in the EC after 1992: Some applied general equilibrium calculations
Welfare effects of value-added tax harmonization in Europe : a computable general equilibrium analysis
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