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• Exercise | August 2015 (Revised July 2020)

  Business Models Problem Set

  Ramana Nanda, William A. Sahlman, Robert White and Hunter Ashmore

  Citation:

  Nanda, Ramana, William A. Sahlman, Robert White, and Hunter Ashmore. "Business Models Problem Set." Harvard Business School Exercise 816-016, August 2015. (Revised July 2020.)  View Details

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• Exercise | August 2016 (Revised July 2020)

  Entrepreneurial Finance Problem Set

  Ramana Nanda, William A. Sahlman and Robert White

  Citation:

  Nanda, Ramana, William A. Sahlman, and Robert White. "Entrepreneurial Finance Problem Set." Harvard Business School Exercise 817-037, August 2016. (Revised July 2020.)  View Details

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• Article | Journal of Financial Economics | July 2020

  The Persistent Effect of Initial Success: Evidence from Venture Capital

  Ramana Nanda, Sampsa Samila and Olav Sorenson

  We use investment-level data to study performance persistence in venture capital (VC). Consistent with prior studies, we find that each additional IPO among a VC firm's first ten investments predicts as much as an 8% higher IPO rate on its subsequent investments, though this effect erodes with time. In exploring its sources, we document several additional facts: successful outcomes stem in large part from investing in the right places at the right times; VC firms do not persist in their ability to choose the right places and times to invest; but early success does lead to investing in later rounds and in larger syndicates. This pattern of results seems most consistent with the idea that initial success improves access to deal flow and that preferential access raises the quality of subsequent investments, perpetuating performance differences in initial investments.

  Keywords: Performance; Monitoring; selection; Status; Venture Capital; Performance Consistency; Investment;

  Citation:

  Nanda, Ramana, Sampsa Samila, and Olav Sorenson. "The Persistent Effect of Initial Success: Evidence from Venture Capital." Journal of Financial Economics 137, no. 1 (July 2020): 231–248.  View Details

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