Throwing Good Money after Bad? Political and Institutional Influences on Sequential Decision Making in the Venture Capital Industry

By Isin Guler. 2007

315 citations recorded by the source corpus.

Subfields: Accounting, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/3237a5baeb53f2693336adb7b912ca02aa767ee3

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Citations in the corpus

Does acquiring venture capital pay off for the funded firms? A meta-analysis on the relationship between venture capital investment and funded firm financial performance (2013, result): “While our results caution to critically reflect on the far-spread assumption about the overall positive effects of VC investments, we also acknowledge that the value provided by the different VCs likely varies to a great extent (e.g., Fitza et al., 2009; Guler, 2007; Scherer et al., 2000).”
Home-Country Networks and Foreign Expansion (2016, methodology): “Neither the use of English as a primary language nor countries’ geographical distance from the United States exerts a robust effect across models.”
Do investors exhibit behavioral biases in investment decision making? A systematic review (2018, methodology): “Guler (2007) finds the reasons for the firms continuing the investments in the venture capital despite the losses from the expected returns.”
A Review and Road Map of Entrepreneurial Equity Financing Research: Venture Capital, Corporate Venture Capital, Angel Investment, Crowdfunding, and Accelerators (2017, background): “That said, due to intraorganizational politics as well as pressure from co-investors and limited partners (escalating commitment) (Guler, 2007) VCs do not always terminate poor performing investments.”
Who Takes You to the Dance? How Partners’ Institutional Logics Influence Innovation in Young Firms (2015, background): “fads (Guler, 2007; Sorenson and Stuart, 2008).”
Signals across multiple networks: : how venture capital and alliance networks affect interorganizational collaboration. (2013, methodology): “In addition, we controlled for the age of the VC funds investing in a new venture (VC fund age) to better incorporate the level of escalation of commitment, whereby VC firms might be less likely to terminate the investment of an older fund and thereby lead to further VC funding rounds (Guler, 2007).”
Social trust and angel investors' decisions: a multilevel analysis across nations (2015, background): “Institutions may be referred as formal and informal (North, 1990), both are related to investment activities, such as venture capital activities (Guler, 2007; Li and Zahra, 2012).”
Studying Choice and Change: The Intersection of Institutional Theory and Entrepreneurship Research (2011, background): “And Guler (2007) finds evidence of normative and mimetic influences on the decisions of venture capital firms to continue their funding of start-up companies.”
Real Options Logic Revisited: The Performance Effects of Alternative Resource Allocation Regimes (2015, methodology): “Real options logic suggests that, to use the flexibility offered by sequential/low-commitment processes, firms ought to discriminate over time which project should continue to receive funding and which should not (Adner, 2007; Guler, 2007).”
Entrepreneurial Finance Meets Organizational Reality: Comparing Investment Practices and Performance of Corporate and Independent Venture Capitalists (2010, methodology): “The cutoff is chosen as most term sheets specify a maximum 90-day closing window during which investors can schedule cash infusions to the portfolio company (Lerner, 1994; Guler, 2007a,b).”
The contingent value of venture capitalist reputation (2011, background): “VCs invest in a large number of companies that never conduct IPOs (Gorman and Sahlman, 1989; Guler, 2007).”