An entrepreneur's choice of venture capitalist or angel-financing: A behavioral game-theoretic approach

Fairchild, Richard

doi:10.1016/j.jbusvent.2009.09.003

Cited by 132 publications

(100 citation statements)

References 45 publications

(51 reference statements)

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“…Of note is the presence of the authors Mason and Harrison, who publish 3 out of the top 20 articles by CPY, accounting for a total of 237 citations. Another interesting new entry is the work by Fairchild (), who advances a theoretical model on the entrepreneur's choice between VC and BA financing, based on an original behavioural game theoretical approach. Moreover, two articles that analyse the obstacles faced by women entrepreneurs in accessing informal risk capital (Becker‐Blease and Sohl, ) and women BA characteristics (Harrison and Mason, ) also received a relatively significant number of CPY, along with the literature review on BAs’ post‐investment value‐added activities by Politis ().…”

Section: Bibliometric Analysismentioning

confidence: 99%

Business Angels Research in Entrepreneurial Finance: A Literature Review and a Research Agenda

Tenca

Croce

Ughetto

2018

Journal of Economic Surveys

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Since the seminal works of Wetzel, research on business angels (BAs) has emerged as a new and promising research field. This review analyses the current knowledge on BAs, identifying the main contents and outcomes. We also provide a bibliometric analysis to illustrate the evolution of the research field, the level of dispersion of the scientific community, the main outlets for publication and the different methodological approaches adopted. Through the analysis of backward and forward citations, we depict the current knowledge base on which BA research is grounded and whether it has any impact on other research fields.

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Section: Bibliometric Analysismentioning

confidence: 99%

Business Angels Research in Entrepreneurial Finance: A Literature Review and a Research Agenda

Tenca

Croce

Ughetto

2018

Journal of Economic Surveys

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“…Fairchild considers the bid of two VCs, focusing on the combined effects on bargaining agreements of value-added services, reputation-seeking, and bargaining power [30]. Fairchild also analyzes the entrepreneur's decision for selecting a VC versus an angel [31]. In Hellmann's work [32], the VC chooses the optimal rate at which to replace entrepreneurs.…”

Section: Literature On Firm Valuation and Gut Feelingmentioning

confidence: 99%

Venture Capital Deals: Beliefs and Ownership

Narayanan

Lévesque

2014

IEEE Trans. Eng. Manage.

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We use a principal-agent model to examine how venture capitalists can determine the ownership division when fund-seeking entrepreneurs possess private information on their disutility of effort. This situation is especially applicable to earlystage first-time entrepreneurs seeking funding, since no history exists on their potential performance. The venture capitalist must thus consider this private information by forming a belief on the entrepreneur's effort level toward the proposed investment opportunity. Formal modeling enables us to describe how the deal process unfolds and to build a simulation. We then identify a unique investor's belief and resulting ownership sharing that maximizes the return to the entrepreneur, one that maximizes the return to the venture capitalist, as well as one that maximizes the deal welfare. We also conjecture an ordering relationship between these critical beliefs and between their resulting ownership allocations. Furthermore, we identify conditions under which the venture capitalist should choose to revise the investment offer if rejected by the entrepreneur. This paper thus moves us closer to a comprehensive theory of venture investment decisions. 1 We interchangeably use "VC" to denote both venture capital and venture capitalist, depending on the context. 0018-9391

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“…Fairchild (): What are the effects of economic and behavioral characteristics on an entrepreneur's choice between a business angel and a venture capitalist?…”

Section: Introductionmentioning

confidence: 99%

The Role of Operations Management Across the Entrepreneurial Value Chain

Joglekar

Lévesque

2013

Production and Operations Management

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This special issue contains articles that exemplify the role of operations management across the entrepreneurial value chain. This value chain encompasses all stages of the entrepreneurial phenomenon, including technology commercialization, where discovery, commitment, organization, and growth must take place. We report on a literature search that identifies research questions categorized with respect to topics crucial to operations management scholars and classify these questions under each stage of this value chain. The search guides the development of an evolutionary path for the use of resources, routines, and reputation (3Rs), often lacking in this process, and enables us to propose modeling and topical gaps in the literature. We offer a framework to set up exemplars for operational tradeoffs uniquely associated with the entrepreneurial value chain. We also articulate how five contributed articles in this issue tackle some of these tradeoffs, prior to introducing four perspective pieces. We hope this discussion motivates follow‐on work and triggers a significant increase in the flow of articles that make it to both entrepreneurship and operations management top‐tier academic and practitioner publications.

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An entrepreneur's choice of venture capitalist or angel-financing: A behavioral game-theoretic approach

Cited by 132 publications

References 45 publications

Business Angels Research in Entrepreneurial Finance: A Literature Review and a Research Agenda

Business Angels Research in Entrepreneurial Finance: A Literature Review and a Research Agenda

Venture Capital Deals: Beliefs and Ownership

The Role of Operations Management Across the Entrepreneurial Value Chain

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