Entrepreneur’s choice between Venture Capitalist and Business Angel for Start-Up Financing:

emphasizes that besides economic factors, behavioral aspects also influence entrepreneur's financing choice. Whereas VCs provide higher-value adding capabilities in economical terms, entrepreneurs often benefit from an empathetic and trusting relationship with a BA. This promotes mutual trust a...

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Bibliographic Details
Main Author: Schmidt, Daniel (Author)
Format: Electronic eBook
Language:English
Published: Hamburg Diplomica Verlag 2014
Edition:1st ed
Subjects:
Summary:emphasizes that besides economic factors, behavioral aspects also influence entrepreneur's financing choice. Whereas VCs provide higher-value adding capabilities in economical terms, entrepreneurs often benefit from an empathetic and trusting relationship with a BA. This promotes mutual trust and thereby mitigates double-sided moral-hazard problems. The findings of Fairchild (2011) are supported by Freear et al. (1994), who also emphasize the more interpersonal relationships with BAs, providing the benefits of a productive and trustful atmosphere. Still, it is uncertain if the benefits of a trustful relationship lead to economic growth, thus. H2a: The financing by a BA has no impact on value creation and thus does not enhance the prospects of success for a venture in the High-Technology sector. H2b: The financing by a VC has no impact on value creation and thus does not enhance the prospects of success for a venture in the Low-Technology sector
Item Description:Description based on publisher supplied metadata and other sources
Physical Description:1 online resource (55 pages)
ISBN:9783954896905
9783954891900

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