School of Accounting and Finance
Hong Kong Polytechnic University
Hung Hom, Kowloon, Hong Kong
Institutional Affiliation: Hong Kong Polytechnic University
NBER Working Papers and Publications
|September 2019||Getting Tired of Your Friends: The Dynamics of Venture Capital Relationships|
with Thomas F. Hellmann: w26274
Does doing more deals together always strengthen investor relationships? Based on the relationships of the top 50 US venture capital firms, this paper focuses on the strengths of relationships and their dynamic evolution. Empirical estimates indicate that having a deeper relationship leads to fewer, not more future coinvestments. Moreover, deeper relationships lead to lower exit performance, even after controlling for endogeneity. Interestingly, deeper relationships first lead to lower performance, and subsequently lead to a slowdown in the relationship intensity. Relationship effects are more negative for VC firms with less central network positions, and for deals made in “hot” investment markets.
|November 2010||The Effects of Government-Sponsored Venture Capital: International Evidence|
with James A. Brander, Thomas F. Hellmann: w16521
This paper examines the impact of government-sponsored venture capitalists (GVCs) on the success of enterprises. Using international enterprise-level data, we identify a surprising non-monotonicity in the effect of GVC on the likelihood of exit via initial public offerings (IPOs) or third party acquisitions. Enterprises that receive funding from both private venture capitalists (PVCs) and GVCs outperform benchmark enterprises financed purely by private venture capitalists if only a moderate fraction of funding comes from GVCs. However, enterprises underperform if a large fraction of funding comes from GVCs. Instrumental variable regressions suggest that endogeneity in the form of unobservable selection effects cannot account for these effects of GVC financing. The underperformance result a...
Published: The Effects of Government-Sponsored Venture Capital: International Evidence* James A. Brander1, Qianqian Du2 and Thomas Hellmann3 Review of Finance (2014) doi: 10.1093/rof/rfu009 citation courtesy of