Economics at your fingertips  

Financing early-stage ventures: the role of uncertainty and financial markets in the investment choices of venture capitalists

Eric Nasica and Dominique Dufour
Additional contact information
Dominique Dufour: CRIFP - Centre de Recherche en Ingénierie Financière et Finances Publiques - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019)

Working Papers from HAL

Abstract: Our paper sheds light on the reasons for which a rational venture capitalist decides to reallocate his or her portfolio from later to early-stage investment. We explain why, during certain periods, there is a strong correlation between the performance of financial markets and the funds invested in early-stage ventures while, during other periods, the performance of financial markets does not affect such investments. Some hypotheses inferred from our theoretical model, and notably the existence of successive periods of "easy financing" and "lasting rationing" for early-stage firms in the United States venture capital industry, are tested and empirically validated.

Keywords: venture capital; early stage financing; rationality; uncertinty; financial markets; confidence (search for similar items in EconPapers)
Date: 2009
Note: View the original document on HAL open archive server:
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2020-07-03
Handle: RePEc:hal:wpaper:halshs-00466571