Summary of Recent Venture Capital Research

While the stuff is sometimes unintentionally hilarious, there is a burgeoning academic industry in venture capital research — and it’s now and then worth a scan. The following papers have all recently appeared in academic journals (even if some of them have been floating around as working papers for considerably longer):

If I had to suggest just one to read I’d suggest Frank, et al.’s November 2006 paper above from the Journal of Business Venturing on how VCs like to invest in people who, you know, remind them of themselves. It would save entrepreneurs a lot of grief — both pre- and post-investment — if they understood how much every VC sees the world through an idiosyncratic (ahem) and different lens.

Related posts:

  1. Pouring, Drinking, and the Allocation to Venture Capital
  2. Putting Venture Capital in Context
  3. The Venture Capital Cargo Cult
  4. Venture Capital Compensation
  5. Venture Capital Compensation, Part II

Comments

  1. ian says:

    i’ve had one article floating around JCV for 5 yrs and it appears in the same issue as Frank et al.’s.
    Either you didn’t mention it b/c you didn’t like it or it’s not directly relevant ;)
    http://ideas.repec.org/a/eee/jbvent/v21y2006i6p886-909.html

  2. Brent Buckner says:

    re: similarity biases
    See also your post on Sequoia’s investment criteria, specifically Team DNA (“the smartest or most clever in their domain”):
    http://paul.kedrosky.com/archives/2006/11/14/what_sequoia_ca.html
    I suspect that similarity was measured in based in part upon self-reports ;-)