TY  - JOUR
AU  - Gompers,Paul
AU  - Kovner,Anna
AU  - Lerner,Josh
AU  - Scharfstein,David
TI  - Skill vs. Luck in Entrepreneurship and Venture Capital: Evidence from Serial Entrepreneurs
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12592
PY  - 2006
Y2  - October 2006
UR  - http://www.nber.org/papers/w12592
L1  - http://www.nber.org/papers/w12592.pdf
N1  - Author contact info:
Paul Gompers
Graduate School of Business
Harvard University, Morgan 483
Soldiers Field
Boston, MA 02163
Tel: 617/495-6297
Fax: 617/496-8443
E-Mail: pgompers@hbs.edu

Anna Kovner
Morgan Hall
Graduate School of Business Administration
Harvard University
Boston, MA 02163
E-Mail: akovner@hbs.edu

Josh Lerner
Harvard Business School
Rock Center 214
Boston, MA 02163
Tel: 617/495-6065
Fax: 617/496-7357
E-Mail: jlerner@hbs.edu

David S. Scharfstein
Harvard Business School
Baker 239
Soldiers Field
Boston, MA 02163
Tel: 617/496-5067
Fax: 617/496-8443
E-Mail: dscharfstein@hbs.edu
M1  - published as testing by Alex
 testing by Alex 4
AB  - This paper argues that a large component of success in entrepreneurship and venture capital can be attributed to skill. We show that entrepreneurs with a track record of success are more likely to succeed than first time entrepreneurs and those who have previously failed. Funding by more experienced venture capital firms enhances the chance of success, but only for entrepreneurs without a successful track record. Similarly, more experienced venture capitalists are able to identify and invest in first time entrepreneurs who are more likely to become serial entrepreneurs. Investments by venture capitalists in successful serial entrepreneurs generate higher returns for their venture capital investors. This finding provides further support for the role of skill in both entrepreneurship and venture capital.
ER  -