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Cited by 1,359

The DOI matches its Crossref record; 42 of the 42 references it cites were found in a registry or an index.

What Do Entrepreneurs Pay for Venture Capital Affiliation?

Open access
Hsu, David H.·2004·The Journal of Finance
DOI 10.1111/j.1540-6261.2004.00680.x
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Abstract

This study empirically evaluates the certification and value‐added roles of reputable venture capitalists (VCs). Using a novel sample of entrepreneurial start‐ups with multiple financing offers, I analyze financing offers made by competing VCs at the first professional round of start‐up funding, holding characteristics of the start‐up fixed. Offers made by VCs with a high reputation are three times more likely to be accepted, and high‐reputation VCs acquire start‐up equity at a 10–14% discount. The evidence suggests that VCs' “extra‐financial” value may be more distinctive than their functionally equivalent financial capital. These extra‐financial services can have financial consequences.

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Metadata

Authors
Hsu, D. H.
Venue
The Journal of Finance
Publisher
Wiley
Published
2004-08
Volume
59
Issue
4
Pages
1805-1844
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.2004.00680.x
OpenAlex
W2105738429
Cited by
1,359
References
42
FWCI
154.67
Type
journal article
Language
en
Open access
bronze

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CoChat. (2026). Citation check: What Do Entrepreneurs Pay for Venture Capital Affiliation? https://app.cochat.ai/papers/10.1111/j.1540-6261.2004.00680.x
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Hsu, D. H. (2004). What Do Entrepreneurs Pay for Venture Capital Affiliation? The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2004.00680.x

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.