Informed Capital in a Hostile Environment: The Case of Relational Investors in Germany

Arbeitspapier

Informed capital is a crucial ingredient to a well-functioning market for start-up finance, especially in times of difficult market conditions. For bank-based systems, the question regarding which investors actually supply informed capital has not yet been answered. To fill this gap, we conduct a survey among German suppliers of start-up finance. We find significant differences between the investors which are linked to banks and those financiers which are not. Although, the bankrelated group, including public equity suppliers, delivers some sort of informed capital, venture capital companies and Business Angels are the key providers of informed capital in the German market for start-up finance.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 549

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; New Firms; Startups ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Firm Behavior: Theory ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
• Subject: informed capital ; start-up financing ; venture capital ; banks ; information

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schäfer, Dorothea ; Schilder, Dirk
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/18442
• Last update: 10.03.2025, 11:43 AM CET