Quotation Franke, Nikolaus, Gruber, Marc, Harhoff, Dietmar, Henkel, Joachim. 2006. What you are is what you like-similarity biases in venture capitalists' evaluations of start-up teams. Journal of Business Venturing (JBV) 21 (6): S. 802-826.


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Abstract

This paper extends recent research studying biases in venture capitalist's decision-making. We contribute to this literature by analyzing biases arising due to similarity between a venture capitalist and members of a venture team. We summarize the psychological foundations of such similarity effects and derive a set of hypotheses regarding the impact of similarity on the assessement of team quality. Using data from a conjoint experiment with 51 respondents, we find that venture capitalists tend to favor teams that are similar to themselves w.r.t. the type of training and professional experience. Our results have important implications for academics and practitioners alike.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Business Venturing (JBV)
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new MAN-A, STRAT-A, WH-A
Language English
Title What you are is what you like-similarity biases in venture capitalists' evaluations of start-up teams
Volume 21
Number 6
Year 2006
Page from 802
Page to 826
Reviewed? Y
DOI http://dx.doi.org/10.1016/j.jbusvent.2005.07.001

Associations

People
Franke, Nikolaus (Details)
External
Gruber, Marc (Ecole Polytechnique Fe´de´rale de Lausanne, Switzerland)
Harhoff, Dietmar (LMU München, Germany)
Henkel, Joachim (TU München, Germany)
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