What determines the level of informal venture finance investment? Market clearing forces and gender effects

Burke, Andrew; Stel, André van; Hartog, Chantal; Ichou, Abdel

doi:10.1007/s11187-013-9518-4

Cited by 23 publications

(19 citation statements)

References 29 publications

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“…Further, controlling for investment size did not influence our results regarding main effects or interaction effects and we can conclude our results are robust with regards to investment size. This is in contrast to results from Burke et al (2014) who also applied GEM data. They found that positive payback increases with investment size.…”

Section: Investment Sizecontrasting

confidence: 99%

“…They found that positive payback increases with investment size. The conflict between the results of the two studies may be explained by the fact that our study includes fewer countries and thereby fewer respondents and the fact that Burke et al (2014) included missing values as 'unknown' in their model.…”

Section: Investment Sizementioning

confidence: 87%

“…The same variables can be modelled in different ways explaining different outcomes with different antecedents. For instance, Burke et al (2014), also using public available GEM data, applied payback expectations (our dependent variable) to explain investment size. They found that those expecting positive payback were more inclined to make larger informal investments compared to those expecting nothing in return.…”

Section: Limitationsmentioning

confidence: 99%

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Altruistic investment decision behavior in early-stage ventures

et al. 2016

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In this study, we develop and test a gendered social capital model of altruistic investment behavior that explains why some informal investors expect high returns on their investments while others expect no payback at all. Prior literature predominantly assumes that informal investors engage in investment activities with a return on investment and profit in mind; however, other non-financial objectives for informal investment-e.g. altruistic informal investment-have also been suggested although their antecedents unexplored. We suggest altruistic investment behavior depends on life circumstances determined by social capital, gender, and their combination. Our empirical evidence supports these propositions.

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Section: Investment Sizecontrasting

confidence: 99%

Section: Investment Sizementioning

confidence: 87%

Section: Limitationsmentioning

confidence: 99%

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Altruistic investment decision behavior in early-stage ventures

et al. 2016

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“…Recent studies have demonstrated that gender causes more difficulties when female entrepreneurs seek financing compared to male entrepreneurs (Brana, 2013;Burke, van Stel, Hartog, & Ichou, 2014;Gicheva & Link, 2013;Saparito, Elam, & Brush, 2013). This leads female entrepreneurs to raise smaller amounts of capital compared to men (Coleman & Kariv, 2014;Kremel & Yazdanfar, 2015).…”

Section: Literature Background Gender Differences In Financial Decisimentioning

confidence: 99%

Gender Stereotypes and Venture Support Decisions: How Governmental Venture Capitalists Socially Construct Entrepreneurs’ Potential

Malmström

Johansson

Wincent

2017

Entrepreneurship Theory and Practice

170

140

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In the present study, we conduct a discourse analysis on a set of longitudinal observations of government venture capitalists' decisions to identify how gender stereotypes are socially constructed and activated when assessing entrepreneurs' potential in the financial distribution of venture support. The present study finds that female entrepreneurs risk receiving significantly less venture capital, which is caused by the language and rhetoric used that relates to gender differences when funding decisions are made. We consider and discuss the implications of our results for related research about distributing venture capital and the social constructions of female and male entrepreneurs.

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“…Entrepreneurs distribute ownership rights to informal investors early in the start-up process, putting the lie to the idea that triple-F financiers act out of charity (Kotha and George 2012;Ford and Nelsen 2014). In fact, the supply of such finance typically follows demand closely, and the amounts invested are of the same order of magnitude as amounts committed by angel investors in later stages of development (Burke et al 2014). In other words, entrepreneurs mobilize significant funds from their personal and informal networks that aid in the development of their nascent ventures.…”

Section: Taxation Of Private Wealthmentioning

confidence: 99%