Trust and controllability in venture capital fundraising

Publikations-Art

Zeitschriftenbeitrag (peer-reviewed)

Autoren

Kollmann, Tobias / Kuckertz, Andreas / Middelberg, Nils

Erscheinungsjahr

2014

Veröffentlicht in

Journal of Business Research

Band/Volume

67/11

Seite (von - bis)

2411-2418

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.