Trust and controllability in venture capital fundraising

Publication Type
Journal contribution (peer reviewed)
Authors
Kollmann, Tobias / Kuckertz, Andreas / Middelberg, Nils
Year of publication
2014
Published in
Journal of Business Research
Band/Volume
67/11
Page (from - to)
2411-2418
Abstract

This study discusses a model of success in venture capital (VC) fundraising. We develop this model based on agency and trust theory. The model is tested against quantitative data collected from 151 limited partners (LP) with headquarters predominantly in North America and Europe. Beyond the well-known criterion of the VC firm's track record, results suggest that trust and perceived controllability shape the investment decisions of those LPs. Moreover, antecedents of these main factors are evaluated. In sum, this study shows how fundraising VC firms can systematically manage the fundraising process.

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