Performance effects of luring top investors for early-stage financing

Johnson, Timo; Bock, Carolin; FISCH, Christian; Schiereck, Dirk

doi:10.1504/IJEV.2023.133456

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Article (Scientific journals)

Performance effects of luring top investors for early-stage financing

Johnson, Timo; Bock, Carolin; FISCH, Christian et al.

2023 • In International Journal of Entrepreneurial Venturing, 15 (4), p. 317-345

Peer Reviewed verified by ORBi

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https://hdl.handle.net/10993/58357

DOI
10.1504/IJEV.2023.133456

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Keywords :

Accelerator; Acquisition; Angel; Entreprenuerial finance; Exit; Investor; IPO; Performance; Start-up; Venture capital

Abstract :

[en] We assess how early-stage financing affects the overall performance of start-ups. Specifically, we compare the impact of accelerator programs, business angels, venture capitalists, and non-refundable capital on the acquisition of follow-on financing and exit success. We also assess differences between top investors and other investors in the respective financing form. Based on a dataset of 81,883 start-ups, we show that both the financing form and the individual investors have significant long-term effects on performance. More specifically, the relative contribution of the financing form is strongly outweighed by the experience effects of top investors. Utilising various fixed effects and probit regression models, we demonstrate that these results are valid across financing forms and apply to both interim performance and exit success.

Research center :

Interdisciplinary Centre for Security, Reliability and Trust (SnT) > EINT-Entrepreneurship, Innovation and New Technology
NCER-FT - FinTech National Centre of Excellence in Research

Disciplines :

General management, entrepreneurship & organizational theory

Author, co-author :

Johnson, Timo

Bock, Carolin

FISCH, Christian ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > Entrepreneurship, Innovation, and New Technology (EINT)

Schiereck, Dirk

External co-authors :

yes

Language :

English

Title :

Performance effects of luring top investors for early-stage financing

Publication date :

2023

Journal title :

International Journal of Entrepreneurial Venturing

ISSN :

1742-5360

eISSN :

1742-5379

Publisher :

Inderscience Publishers, Switzerland

Volume :

Issue :

Pages :

317-345

Peer reviewed :

Peer Reviewed verified by ORBi

Focus Area :

Entrepreneurship and Innovation / Audit

Available on ORBilu :

since 30 November 2023

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