TY - GEN
T1 - Ending the mending wall
T2 - 31st International Conference on Information Systems, ICIS 2010
AU - Greenwood, Brad
AU - Gopal, Anandasivam Gopal
PY - 2010
Y1 - 2010
N2 - Venture capitalists and the entrepreneurs they fund are observed to be co-located in order to enable both parties to extract value from their respective investments. This co-location may be relaxed in different conditions. In this paper, we explore conditions under which entrepreneurs not co-located with venture capitalists are still funded. Using the mechanisms of legitimacy and efficiency, we show that fashionability of the entrepreneurial venture's technology or product can lead to venture funding when the entrepreneur and the VC are not co-located. Similarly, entrepreneurs who are co-located with a highly visible business partner or who possess original intellectual property also have higher odds of funding when not co-located with the focal VC. Finally, we show that these effects are heightened during the Internet boom of 1995-2000, characterized by mimetic contagion. The analysis is conducted on a sample of 44,057 new IT- based ventures funded in North America between 1985 and 2006.
AB - Venture capitalists and the entrepreneurs they fund are observed to be co-located in order to enable both parties to extract value from their respective investments. This co-location may be relaxed in different conditions. In this paper, we explore conditions under which entrepreneurs not co-located with venture capitalists are still funded. Using the mechanisms of legitimacy and efficiency, we show that fashionability of the entrepreneurial venture's technology or product can lead to venture funding when the entrepreneur and the VC are not co-located. Similarly, entrepreneurs who are co-located with a highly visible business partner or who possess original intellectual property also have higher odds of funding when not co-located with the focal VC. Finally, we show that these effects are heightened during the Internet boom of 1995-2000, characterized by mimetic contagion. The analysis is conducted on a sample of 44,057 new IT- based ventures funded in North America between 1985 and 2006.
KW - Business partner co-location
KW - Co-location
KW - Entrepreneurship
KW - Fashionability
KW - Information technology
KW - Intellectual property
KW - Rare events logistic regression
KW - Venture capital
UR - http://www.scopus.com/inward/record.url?scp=84870970066&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84870970066&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84870970066
SN - 9780615418988
T3 - ICIS 2010 Proceedings - Thirty First International Conference on Information Systems
BT - ICIS 2010 Proceedings - Thirty First International Conference on Information Systems
Y2 - 12 December 2010 through 15 December 2010
ER -