Entrepreneur's choice between Venture Capitalist and Business Angel for Start-Up Financing ; Table of contents; Abstract; 1 Introduction; 1.1 Purpose; 1.2 Structure of the study; 2 The venture capital market; 2.1 The entrepreneurial perspective; 2.2 Business angels; 2.3 Venture capitalists; 2.4 Corporate venture capitalists; 2.5 High- and low-technology ventures; 2.6 The principal-agent problem -- Venture capital contracting; 3 Literature review and Hypotheses development; 3.1 Value creation of business angels; 3.2 Value creation of venture capitalists; 3.3 Complementarities
4 Data and Methodology4.1 Data selection; 4.2 Scientific approach; 4.3 Determinants of success and failure; 5 Empirical results; 5.1 Sample summary; 5.2 Odds ratios; 5.3 Logit regression; 5.4 Hypotheses testing; 6 Discussion; 7 Conclusion, limitations and implications; 7.1 Conclusion; 7.2 Limitations; 7.3 Implications; References; Appendix
Summary
The study extends the literature on venture capital by examining whether entrepreneur's choice for an external investor and certain firm characteristics have an impact on venture success or not. The focus is set on the differences in value creation by venture capitalists and business angels for ventures of the high- and low-technology sector. The assessment of a data set including 252 Series A financing rounds by venture capitalist firms, business angels and collaborative investments of both investors conducted between 2005 and 2012 unveils value enhancing aspects for all three financing solut
