Capital Markets

10 September 2020

Nepotism in IPOs: consequences for issuers and investors

Potential conficts of interest arise when IPO underwriters allocate IPO shares to their affiliated funds. We hypothesize that such nepotism incentives affect IPO pricing. Using a novel hand-collected dataset, we find support for...

François Degeorge | Giuseppe Pratobevera

Venture capital

27 April 2020

Mutual Funds As Venture Capitalists? Evidence from Unicorns

The past decade saw the rise of both “founder-friendly” venture financings and non-traditional investors, frequently with liquidity constraints. Using detailed contract data, we study open-end mutual funds investing in...

Sergey Chernenko | Josh Lerner | Yao Zeng

Venture capital

19 September 2019

Angels and Venture Capitalists: Substitutes or Complements?

Understanding an entrepreneurial finance ecosystem requires an appreciation of how different investors interact with each other. Angels and venture capitalists constitute two very important investors in start-ups. We develop and...

Thomas Hellmann | Paul Schure | Dan H. Vo

Venture capital

19 September 2019

Getting Tired of Your Friends: The Dynamics of Venture Capital Relationships

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...

Qianqian Du | Thomas Hellmann