The role of gender in entrepreneur-investor relationships : A signaling theory approach

Author's accepted version (postprint).Available from 11/01/2018.This is the peer reviewed version of the following article: Alsos, G. A. & Ljunggren, E. (2016). The role of gender in entrepreneur-investor relationships: A signaling theory approach. Entrepreneurship: Theory & Practice, which has been published in final form at http://dx.doi.org/10.1111/etap.12226. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving (http://olabout.wiley.com/WileyCDA/Section/id-820227.html).This study adopts a gender perspective to analyze funding decisions made by an investment fund that invests equity stakes in new ventures. Prior research has indicated that there is gender skewness in risk capital investments resulting from a combination of demand- and supply-side issues. We apply signaling theory to examine the interface between demand and supply to understand gender biases related to risk capital investments. In-depth analyses of decision documents from four investment cases show that gender plays a role in the signals that are communicated in the prefunding entrepreneur–investor relationship

Relocation to get venture capital : a resource dependence perspective

This is the author accepted manuscript. The final version is available from SAGE via the DOI in this record.Using a resource dependence perspective, we theorize and show that non-venture-capital-backed ventures founded in U.S. states with a lower availability of venture capital (VC) are more likely to relocate to California (CA) or Massachusetts (MA)—the two VC richest states—compared to ventures founded in states with a greater availability of VC. Moreover, controlling for self-selection, ventures that relocate to CA or MA subsequently have a greater probability of attracting initial VC compared to ventures that stay in their home state. We discuss the implications for theory, future research, and practice

Do venture capitalists add value? A comparative study between Singapore and US

This study provides a comprehensive overview of venture capital (VC) funds in Singapore. By examining the effects on their public listed investees, a profile of VC-backed listed companies in Singapore is analysed. It is found that value added of VCs to their investees can be attributed in several aspects: their equity stake taking, board seat, and especially in their timing of initial public offerings (IPOs) to market heights. The findings in the paper have several implications. Although the role of VC firms in Singapore is important in creating public companies, their participation with respect to their investees still lags behind their counterparts in the US. Their value added in management functions needs to be emphasized so that they can contribute more to the investees and thus, enhance their own returns. For companies seeking VC support or already preparing IPO with VC support, they should know what VCs can and cannot provide. For instance, they can expect the VCs to help in the timing of IPOs, but in management support, the help provided by the VCs in Singapore is limited compared to their US counterparts.

Staging of Venture Financing, Investor Opportunism and Patent Law

Stage financing provides a real option that is valuable when facing external uncertainty. However, it may also induce investor hold-up, if the property rights on an invention are not sufficiently protected. As a consequence, the entrepreneur may not work hard. Investor opportunism is less likely to occur, if investors' residual cash-flow-rights are contingent on verifiable 'milestones' in the previous stage. Equity-linked financing also provides high-powered incentives to the investor not to 'steal the idea' because his payoff becomes sensitive to the project value. The paper provides a new explanation for both types of contractual provisions. Copyright 2006 The Author Journal compilation (c) 2006 Blackwell Publishing Ltd.