Entrepreneurial Finance: A Casebook

Paul A. Gompers; William  Sahlman

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Casebook | 2001

Entrepreneurial Finance: A Casebook

by Paul A. Gompers and William Sahlman

Keywords: Entrepreneurship; Finance;

Format: Print

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Citation:

Gompers, Paul A., and William Sahlman. Entrepreneurial Finance: A Casebook. New York: John Wiley & Sons, 2001.

About the Authors

Paul A. Gompers

Eugene Holman Professor of Business Administration

Finance

Entrepreneurial Management

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William A. Sahlman

Baker Foundation Professor, Dimitri V. D'Arbeloff - MBA Class of 1955 Professor of Business Administration, Emeritus

Entrepreneurial Management

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View Publications »

More from these Authors

Technical Note | HBS Case Collection | January 2020

Valuation in Entrepreneurial Settings

Paul Gompers

Citation:
Gompers, Paul. "Valuation in Entrepreneurial Settings." Harvard Business School Technical Note 220-057, January 2020. View Details

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Sahlman, William A., and Nicole Tempest Keller. "Khan Academy 2018 (Abridged)." Harvard Business School Case 820-086, January 2020. View Details

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Article | Journal of Financial Economics | January 2020

How Do Venture Capitalists Make Decisions?

Paul A. Gompers, William Gornall, Steven N. Kaplan and Ilya A. Strebulaev

We survey 885 institutional venture capitalists (VCs) at 681 firms to learn how they make decisions across eight areas: deal sourcing, investment selection, valuation, deal structure, post-investment value-added, exits, internal firm organization, and relationships with limited partners. In selecting investments, VCs see the management team as more important than business-related characteristics such as product or technology. They also attribute more of the likelihood of ultimate investment success or failure to the team than to the business. While deal sourcing, deal selection, and post-investment value-added all contribute to value creation, the VCs rate deal selection as the most important of the three. We also explore (and find) differences in practices across industry, stage, geography, and past success. We compare our results to those for CFOs (Graham and Harvey 2001) and private equity investors (Gompers, Kaplan, and Mukharlyamov forthcoming).

Keywords: Venture Capital; Value Creation; Capital Structure; Entrepreneurship; Decision Making;

Citation:
Gompers, Paul A., William Gornall, Steven N. Kaplan, and Ilya A. Strebulaev. "How Do Venture Capitalists Make Decisions?" Journal of Financial Economics 135, no. 1 (January 2020): 169–190. View Details

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Entrepreneurial Finance: A Casebook

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