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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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• Article | Review of Economics and Statistics | July 2020

  Healthy Business? Managerial Education and Management in Healthcare

  Nicholas Bloom, Raffaella Sadun, Renata Lemos and John Van Reenen

  We investigate the link between hospital performance and managerial education by collecting a large database of management practices and skills in hospitals across nine countries. We find that hospitals that are closer to universities offering both medical education and business education have higher management quality, more MBA-trained managers, and lower mortality rates. This is true compared to the distance to universities that offer only business or medical education (or neither). We argue that supplying joint MBA-healthcare courses may be a channel through which universities increase medical business skills and raise clinical performance.

  Keywords: management; Hospitals; mortality; education; Health Care and Treatment; Performance Improvement; Business Education; Management Practices and Processes;

  Citation:

  Bloom, Nicholas, Raffaella Sadun, Renata Lemos, and John Van Reenen. "Healthy Business? Managerial Education and Management in Healthcare." Review of Economics and Statistics 102, no. 3 (July 2020): 506–517.  View Details

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• Supplement | HBS Case Collection | June 2020

  Moleskine (B): Maria Sebregondi and Arrigo Berni Video Supplements

  Ryan Raffaelli and Raffaella Sadun

  Citation:

  Raffaelli, Ryan, and Raffaella Sadun. "Moleskine (B): Maria Sebregondi and Arrigo Berni Video Supplements." Harvard Business School Multimedia/Video Supplement 420-714, June 2020.  View Details

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