Journal article
Angels and venture capitalists: substitutes or complements?
- Abstract:
- We analyze the funding of start-up companies across financing rounds, focusing on the dynamic interactions between angel investors and venture capitalists. Using unique data from British Columbia, Canada, we show that angels and venture capitalists are dynamic substitutes. This substitutes pattern applies across the performance range of companies. It is less pronounced for serial angels. An instrumental variable analysis, based on available investor tax credits, suggests that the substitutes pattern is driven by company characteristics. Overall, the evidence points to the existence of parallel streams of angel and venture capital funding, with fewer transitions between streams than is traditionally assumed.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
Actions
Access Document
- Files:
-
-
(Preview, Accepted manuscript, pdf, 737.3KB, Terms of use)
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- Publisher copy:
- 10.1016/j.jfineco.2021.04.001
Authors
- Publisher:
- Elsevier
- Journal:
- Journal of Financial Economics More from this journal
- Volume:
- 141
- Issue:
- 2
- Pages:
- 454-478
- Publication date:
- 2021-04-15
- Acceptance date:
- 2020-07-16
- DOI:
- ISSN:
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0304-405X
- Language:
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English
- Keywords:
- Pubs id:
-
1123487
- Local pid:
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pubs:1123487
- Deposit date:
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2020-08-04
Terms of use
- Copyright holder:
- Elsevier B.V.
- Copyright date:
- 2021
- Rights statement:
- © 2021 Elsevier B.V. All rights reserved.
- Notes:
-
This is the accepted manuscript version of the article. The final version is available from Elsevier at https://doi.org/10.1016/j.jfineco.2021.04.001
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