Showing results 1 - 10 of 11
| Ramana Nanda | Matthew Rhodes-Kropf
Coordination Frictions in Venture Capital Syndicates. Ramana Nanda, Matthew Rhodes-Kropf, 2019, Book Chapter, "A clear implication of these potential frictions is that entrepreneurs need to be careful about how to select and build the syndicate of VC investors that back their firm … 18–037). Harvard Business School…"…
| Ramana Nanda | Matthew Rhodes-Kropf
Coordination Frictions in Venture Capital Syndicates. Ramana Nanda, Matthew Rhodes-Kropf, April 11, 2017, Paper, "An extensive literature on venture capital has studied asymmetric information and agency problems between investors and entrepreneurs, examining how separating entrepreneurs from the investor can create frictions that might inhibit the funding of good projects. It has largely abstracted away from the fact that a startup typically…
| Ramana Nanda | Matthew Rhodes-Kropf
Financing Risk and Innovation. Ramana Nanda, Matthew Rhodes-Kropf, March 2016, Paper, "We provide a model of investment in new ventures that demonstrates why some places, times, and industries should be associated with a greater degree of experimentation by investors. Investors respond to financing risk, a forecast of limited future funding, by modifying their focus to finance less innovative firms. In equilibrium, financing risk…
| Ramana Nanda | Matthew Rhodes-Kropf
Regional Variation in Venture Capital: Causes and Consequences. Ramana Nanda, Matthew Rhodes-Kropf, March 22, 2016, Book Chapter. "Entrepreneurship is a central element of the Schumpeterian process of creative destruction (Schumpeter, 1942). Startups have been associated with the birth of important new industries such as semiconductors and computers, the internet and biotechnology, and there is increasing evidence of the important role that …
| Matthew Rhodes-Kropf
Inside Rounds and Venture Capital Returns. Matthew Rhodes-Kropf, December 27, 2015, Paper. "We study sequential investment decisions in the venture capital (VC) industry. VC-backed companies typically need to raise several rounds of funding from VC funds. The decision whether to provide further funding to the company and the terms of the new funding determine VC fund returns. We show that investment outcomes in the VC industry can be predicted…
| Ramana Nanda | Matthew Rhodes-Kropf
Cost of Experimentation and the Evolution of Venture Capital. Ramana Nanda, Matthew Rhodes-Kropf, December 2015, Paper. "We study adaptation by financial intermediaries as a response to technological change in the context venture-capital finance. Using a theoretical model and rich data, we are able to both document and provide a framework to understand the changes in the investment strategy of VCs in recent years - an increased prevalence of…
| Ramana Nanda | Matthew Rhodes-Kropf
Financing Entrepreneurial Experimentation. Ramana Nanda, Matthew Rhodes-Kropf, June 2015, Paper, "The fundamental uncertainty of new technologies at their earliest stages implies that it is virtually impossible to know the true potential of a venture without learning about its viability through a sequence of investments over time. We show how this process of experimentation can be particularly valuable in the context of entrepreneurship because…
| Matthew Rhodes-Kropf
Inside Rounds and VC Returns. Matthew Rhodes-Kropf, May 4, 2015, Paper. "We study sequential investment decisions in the venture capital (VC) industry. VC-backed companies typically need to raise several rounds of funding from VC funds. The decision whether to provide further funding to the company and the terms of the new funding determine the returns of VC funds and their ability to back successful companies. We show that investment outcomes…
| Matthew Rhodes-Kropf
Corporate Financial Policies in Overvalued Credit Markets, Matthew Rhodes-Kropf, March 16, 2015, Paper, We investigate the repercussions of credit market mistakes for a firm’s borrowing and investment decisions. When credit ratings are relatively optimistic, we find evidence that firms take advantage of inaccuracies by issuing more debt, increasing leverage, rolling over more debt and lengthening maturities. The result goes beyond a wealth…
| Ramana Nanda | Matthew Rhodes-Kropf | William Kerr
Entrepreneurship as Experimentation. William R. Kerr, Ramana Nanda, Matthew Rhodes-Kropf, Summer 2014, Paper. "Entrepreneurship research is on the rise, but many questions about its fundamental nature still exist. We argue that entrepreneurship is about experimentation: the probabilities of success are low, extremely skewed, and unknowable until an investment is made. At a macro level, experimentation by new firms underlies the Schumpeterian…