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Dear colleagues,

As part of a study of startups, I've been trying to review the literature on which startups get VC funded and which ones do not. I have used Bob Zider's 1998 HBR article in class, but I'd consider that more of a stylized argument than an empirical study.

My finance colleague recommended to me the literature on optimal capital structure (e.g. pecking order theory, real options). But these appear to be more models for optimization than actual explanations of how VCs make decisions.

I'd welcome any pointers and (if there's interest) would be glad to summarize back to the list.

Joel
--
Joel West http://www.JoelWest.org/
Associate Professor, Innovation & Entrepreneurship
College of Business, San Jose State University
BT 555, One Washington Square, San Jose, CA 95192-0070

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Ventures HO!

Joel,

Check out the following articles. They are a little dated but you can track
the newer ones through webofscience citation search.

Boocock, G., & Woods, M. 1997. The evaluation criteria used by venture
capitalists: Evidence from a UK venture fund. International Small Business
Journal. 16:36-57.

Fried, V. H., & Hisrich, R. D. 1994. Toward a model of venture capital
investment decision making. Financial Management. 23: 28-37.

Zacharakis, A. L., & Meyer, G. D. 2000. The potential of actuarial decision
models: Can they improve the venture capital investment decision? Journal of
Business Venturing. 15: 323-346.


-------------------------------------------------------
Andac ARIKAN, Ph.D.
Florida Atlantic University
College of Business
Department of Management/IB & Entrepreneurship
777 Glades Road
Boca Raton, FL 33431
Phone: (561) 297 1247
Fax: (561) 297 2675
-------------------------------------------------------


-----Original Message-----
From: Entrepreneurship Division Listserv [mailto:ENTREP@AOMLISTS.pace.edu]
On Behalf Of Joel West
Sent: Monday, March 24, 2008 1:42 AM
To: ENTREP@AOMLISTS.pace.edu
Subject: [ENTREP] Behavioral venture finance?

Dear colleagues,

As part of a study of startups, I've been trying to review the literature on
which startups get VC funded and which ones do not. I have used Bob Zider's
1998 HBR article in class, but I'd consider that more of a stylized argument
than an empirical study.

My finance colleague recommended to me the literature on optimal capital
structure (e.g. pecking order theory, real options). But these appear to be
more models for optimization than actual explanations of how VCs make
decisions.

I'd welcome any pointers and (if there's interest) would be glad to
summarize back to the list.

Joel
--
Joel West http://www.JoelWest.org/
Associate Professor, Innovation & Entrepreneurship
College of Business, San Jose State University
BT 555, One Washington Square, San Jose, CA 95192-0070

**************************************
This message is from ENTREP which is sponsored by the Entrepreneurship
Division of the Academy of Management.

Please do not post messages with attached files. Commercial messages or
spammed messages are not allowed on the list. The use of auto-responder
"out-of-office" messages may also lead to your removal from the list.

You can manage your subscription options, including joining or leaving the
list here:
http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

If you have questions or need help, please contact Dr. John Bunch
jbunch@benedictine.edu.

Ventures HO!

**************************************
This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

You can manage your subscription options, including joining or leaving the list here:
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If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

Ventures HO!

Dear Joel,

This is my area of research. I focused my dissertation on which entrepreneurs get funded based on investing criteria and personality of the entrepreneur.

Although lighter and less rigorous in a research sense, I have worked on a few articles. The first is how Angel investors rank investment criteria, second is concerning Angel motivation, and the third is related to whether investors rate the entrepreneur or opportunity higher (the horse or jockey concept). Although you inquired about VCs, there are many parallels between VCs and Angels.

In addition, I have been an Angel investor for over 8 years and have screened over 500 companies. Therefore, I have some practical experience in this area. If it would be helpful, I would be glad to discuss this with you over the phone.

If you would like copies of the article, please email me back and I will forward them to you.

Kind Regards,
Richard Sudek, PhD
Assistant Professor of Entrepreneurship
Argyros School of Business and Economics, Chapman University
Entrepreneurship program ranked in the top ten nationally



-----Original Message-----
From: Entrepreneurship Division Listserv [mailto:ENTREP@AOMLISTS.pace.edu] On Behalf Of Joel West
Sent: Sunday, March 23, 2008 10:42 PM
To: ENTREP@AOMLISTS.pace.edu
Subject: [ENTREP] Behavioral venture finance?

Dear colleagues,

As part of a study of startups, I've been trying to review the literature on which startups get VC funded and which ones do not. I have used Bob Zider's 1998 HBR article in class, but I'd consider that more of a stylized argument than an empirical study.

My finance colleague recommended to me the literature on optimal capital structure (e.g. pecking order theory, real options). But these appear to be more models for optimization than actual explanations of how VCs make decisions.

I'd welcome any pointers and (if there's interest) would be glad to summarize back to the list.

Joel
--
Joel West http://www.JoelWest.org/
Associate Professor, Innovation & Entrepreneurship
College of Business, San Jose State University
BT 555, One Washington Square, San Jose, CA 95192-0070

**************************************
This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

You can manage your subscription options, including joining or leaving the list here:
http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

Ventures HO!

**************************************
This message is from ENTREP which is sponsored by the Entrepreneurship Division of the Academy of Management.

Please do not post messages with attached files. Commercial messages or spammed messages are not allowed on the list. The use of auto-responder "out-of-office" messages may also lead to your removal from the list.

You can manage your subscription options, including joining or leaving the list here:
http://aomlists.pace.edu/scripts/wa.exe?SUBED1=entrep&A=1

If you have questions or need help, please contact Dr. John Bunch jbunch@benedictine.edu.

Ventures HO!