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Ethnic matching in the U S venture capital market
We document the role of entrepreneurial founder and venture capital (VC) partner co-ethnicity in shaping investment relationships. Co-ethnicity increases the likelihood that a VC firm invests in a company. Conditional on investment, co-ethnicity strengthens the degree of involvement by raising the...
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| Format: | Article |
| Language: | English |
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2015
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| LEADER | 01019nab a22001217a 4500 | ||
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| 008 | 160615b2015 xxu||||| |||| 00| 0 eng d | ||
| 100 | |a Bengtsson, Ola | ||
| 245 | |a Ethnic matching in the U S venture capital market |c Bengtsson, Ola. | ||
| 260 | |c 2015 | ||
| 300 | |a 338 - 354 | ||
| 520 | |a We document the role of entrepreneurial founder and venture capital (VC) partner co-ethnicity in shaping investment relationships. Co-ethnicity increases the likelihood that a VC firm invests in a company. Conditional on investment, co-ethnicity strengthens the degree of involvement by raising the likelihood of VC board of director involvement and increasing the size and scope of investment. These results are consistent with trust and social-network based mechanisms. Shared ethnicity in our sample is associated with worse investment outcomes as measured by investment liquidity, however, which our results suggest might stem from looser screening and/or corporate governance. | ||
| 773 | |a Journal of Business Venturing |d Mar | ||
| 999 | |c 43836 |d 43836 | ||