Quotation Franke, Nikolaus, Gruber, Marc, Harhoff, Dietmar, Henkel, Joachim. 2008. Venture capitalists' evaluations of start-up teams: Trade-offs, knock-out criteria, and the impact of VC experience. Entrepreneurship: Theory and Practice (ET&P) 32 (3): S. 459-483.


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Abstract

The start-up team plays a key role in venture capitalists' evaluations of venture proposals. Our findings go beyond existing research, first by providing a detailed exploration of VCs' team evaluation criteria, and second by investigating the moderator variable of VC experience. Our results reveal utility trade-offs between team characteristics and thus provide answers to questions such as 'What strength does it take to compensate for a weakness in characteristic A?' Moreover, our analysis reveals that novice VCs tend to focus on the qualifications of individual team members, while experienced VCs focus more on team cohesion. Data was obtained in a conjoint experiment with 51 professionals in VC firms and analyzed using discrete choice econometric models.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Entrepreneurship: Theory and Practice (ET&P)
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, MAN-A, STRAT-A, WH-A
Language English
Title Venture capitalists' evaluations of start-up teams: Trade-offs, knock-out criteria, and the impact of VC experience
Volume 32
Number 3
Year 2008
Page from 459
Page to 483
Reviewed? Y
URL https://www.wu.ac.at/fileadmin/wu/d/i/entrep/4_forschung/full-text-papers/franke_et_al_2008_venture_capitalists_evalutions_of_start-up_teams.pdf
DOI http://dx.doi.org/10.1111/j.1540-6520.2008.00236.x

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People
Franke, Nikolaus (Details)
External
Gruber, Marc
Harhoff, Dietmar
Henkel, Joachim
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