When and Why Do Venture Capital-Backed Companies Obtain Venture Lending?
Journal
Journal of Financial and Quantitative Analysis
Type
journal article
Date Issued
2017
Author(s)
Abstract (De)
© 2017 Michael G. Foster School of Business, University of Washington. I model the decision of an informed early-stage venture capital (VC) investor that considers involving an uninformed VC or venture lending (VL) investor to finance the late stage. Early-stage VC investors that own high-quality value companies tend to signal their quality and they frequently turn to VL investors. Early-stage VC investors prefer VC if the proportion of high-quality companies in the population is high, if their companies have a high upside potential, if they can benefit from the value that late-stage VC investors add, or if uncertainty is high. I find empirical evidence consistent with these predictions.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SOF - System-wide Risk in the Financial System
Refereed
Yes
Volume
52
Start page
1049
End page
1080
Subject(s)
Division(s)
Contact Email Address
tereza.tykvova@unisg.ch
Eprints ID
259425
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Name
when_and_why_do_venturecapitalbacked_companies_obtain_venture_lending.pdf
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388.13 KB
Format
Adobe PDF
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