Who are the active investors?: Evidence from venture capital

Bottazzi, Laura, Da Rin, Marco and Hellmann, Thomas (2008) Who are the active investors?: Evidence from venture capital. Journal of Financial Economics, 89 (3). pp. 488-512.

Abstract

This paper examines the determinants and consequences of investor activism in venture capital. Using a hand-collected sample of European venture capital deals, it shows the importance of human capital. Venture capital firms with partners that have prior business experience are more active recruiting managers and directors, helping with fundraising, and interacting more frequently with their portfolio companies. Independent venture capital firms are also more active than ‘captive’ (bank-, corporate-, or government-owned) firms. After controlling for endogeneity, investor activism is shown to be positively related to the success of portfolio companies.

Item Type: Article
Keywords: Financial intermediation; Venture capital; Investor activism; Human capital; Corporate governance; finance
Subject(s): Finance
Related URLs:
Date Deposited: 11 Dec 2014 11:33
Last Modified: 23 Feb 2017 09:51
Funders: European Commission (Grant HPSE-CT-2002-00140), Italian Ministry of Research (FIRB Grant RBAU013CNJ), European Investment Fund, Bocconi University Ricerca di Base 2004, SSHRC (Canada), Maurice Young Center (UBC)
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5228

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