Contracting, signaling, and moral hazard: a model of entrepreneurs, ‘angels,’ and venture capitalists

Elitzur, Ramy; Gavious, Arieh

doi:10.1016/s0883-9026(03)00027-2

Cited by 242 publications

(141 citation statements)

References 17 publications

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“…Signaling and monitoring activities might thereby take various forms. Entrepreneurs could for example use their personal networks and strong ties to business angels to signal their good reputation to get funding (Elitzur and Gavious 2003), and funding agencies could, for example, install a simple monitoring system for the PI such as a quarterly reporting system. However, the PI's task areas are multifaceted.…”

Section: Multiple-principal Agent Relationships and The Costs And Benmentioning

confidence: 99%

Entrepreneurial ecosystem governance: a principal investigator-centered governance framework

2017

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Research on entrepreneurial ecosystems has largely taken a macro-perspective to better conceptualize and map the determinants and evolution of entrepreneurial ecosystems, yet has neglected the micro-level interactions of various entrepreneurial ecosystem actors. Recent criticisms of entrepreneurial ecosystems have centered on the lack of explicit case and effect relationships, attribution, units of analysis, the different use of network definitions as well as the static nature of existing frameworks. The purpose of our paper is to present a micro level principal investigator (PI)-centered governance framework that addresses these posited criticisms and in doing so identifies the value creation indicators (benefits), PI capabilities, the problem categories (costs), and solving mechanisms that PIs can use to govern effectively and efficiently large-scale publicly funded research programs. In leading such research programs, PIs interact with different actors within entrepreneurial ecosystems and manage governance issues, conflicts, and tensions effectively at the micro level to deliver the anticipated benefits and costs for each actor. Our framework provides the basis for future empirical research on entrepreneurial ecosystem as we have attributed cause and effect at an individual actor level and conceptualized the governance challenges at a micro rather than at the macro level that overcomes the static nature of previous frameworks.

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Section: Multiple-principal Agent Relationships and The Costs And Benmentioning

confidence: 99%

Entrepreneurial ecosystem governance: a principal investigator-centered governance framework

2017

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“…Alternatively, angels may co-invest in deals with venture capitalists, thereby gaining the expertise of a professional investor, or albeit in relatively rare cases, even invest as a limited partner in a venture fund (Mason and Harrison, 2000). Finally, investment by an angel investor may send a signal to the venture capital that the entrepreneur is not going to "take the money and run," thus mitigating possible moral hazard issues (Elitzur and Gavious, 2003) in future VC investments.…”

Section: Comparing Early-stage Investment Modes: Angel Investors and mentioning

confidence: 99%

Angel Investing: A Literature Review

Edelman

Manolova

Brush

2017

FNT in Entrepreneurship

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“…Angels' main role could be identified as, to decide how much to invest, how much to own in the investment return/management, and how much funding and what kind of sourcing to obtain in later stages of invested projects (Elitzur & Gavious, 2003). However, they might have different roles further than those.…”

Section: How Angel Investors Help Entrepreneurs To Actualize Their Idea?mentioning

confidence: 99%

Functioning of Angel Investor Ecosystem in Turkey: A Study on Aegean Region Angel Investors

Dursun¹,

Tekin²,

Karaosmanoglu³

2017

Europ. j. multidiscip. stud.

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Contracting, signaling, and moral hazard: a model of entrepreneurs, ‘angels,’ and venture capitalists

Cited by 242 publications

References 17 publications

Entrepreneurial ecosystem governance: a principal investigator-centered governance framework

Entrepreneurial ecosystem governance: a principal investigator-centered governance framework

Angel Investing: A Literature Review

Functioning of Angel Investor Ecosystem in Turkey: A Study on Aegean Region Angel Investors

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