The Hunter Becomes the Hunted: Non-Financial Aspects of Venture Capitalists’ Attractiveness

57 Pages Posted: 28 Jun 2017

See all articles by Sarah Theinert

Sarah Theinert

Technische Universität München (TUM) - TUM School of Management

Reiner Braun

Technische Universität München (TUM) - TUM School of Management

Anna Gerl

Technische Universität München (TUM)

Date Written: July 2017

Abstract

Several empirical studies have investigated the selection process of venture capitalists (VCs), but the attributes of their attractiveness from entrepreneurs’ perspective remain unknown. Using conjoint analysis based on a sample of 44 German tech entrepreneurs, we investigate how information rights, control rights, support and reputation of a venture capitalist drive their attractiveness. Our analysis shows that VCs’ support and reputation are the most important attributes. Further, we explore how entrepreneurs’ experience and self-efficacy moderate these relationships. We find that inexperienced entrepreneurs as well as those having a high level of self-efficacy value venture capitalists’ reputation significantly less.

Keywords: Venture capital, resource-based view, agency theory, value add, smart capital

JEL Classification: M13, G24

Suggested Citation

Theinert, Sarah and Braun, Reiner and Gerl, Anna, The Hunter Becomes the Hunted: Non-Financial Aspects of Venture Capitalists’ Attractiveness (July 2017). Available at SSRN: https://ssrn.com/abstract=2990317 or http://dx.doi.org/10.2139/ssrn.2990317

Sarah Theinert (Contact Author)

Technische Universität München (TUM) - TUM School of Management ( email )

Arcisstr. 21
München, 80333
Germany

Reiner Braun

Technische Universität München (TUM) - TUM School of Management ( email )

Arcisstr. 21
Munich, Deutschland 80333
Germany
+498928925181 (Phone)
+498928925188 (Fax)

HOME PAGE: http://www.ef.wi.tum.de/

Anna Gerl

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, DE 80333
Germany

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