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What you are is what you like - similarity biases in venture capitalists - evaluations of start-up teams

Franke, Nikolaus and Gruber, Marc and Harhoff, Dietmar and Henkel, Joachim (2006) What you are is what you like - similarity biases in venture capitalists - evaluations of start-up teams. Journal of Business Venturing, 21 (6). pp. 802-826. ISSN 0883-9026

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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. (authors' abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version may require a subscription.
Keywords: entrepreneurship / venture capital / start-up teams / similarity bias
Divisions: Departments > Strategy and Innovation > Entrepreneurship und Innovation > Franke
Version of the Document: Accepted for Publication
Variance from Published Version: Minor
Depositing User: Dissertation Administrator
Date Deposited: 31 May 2011 12:28
Last Modified: 08 Sep 2013 16:30
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/32912/
URI: http://epub.wu.ac.at/id/eprint/3113

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