Competition and Specialization in the VC Market: A Non-monotonic Relationship

被引：0
|
作者：
Cabolis, Christos [1 ]
Dai, Mian [2 ]
Serfes, Konstantinos [2 ]
机构：
[1] IMD, Chemin Beller 23, CH-1001 Lausanne, Switzerland
[2] Drexel Univ, Sch Econ, 3220 Market St, Philadelphia, PA 19104 USA
来源：
REVIEW OF INDUSTRIAL ORGANIZATION | 2023年 / 62卷 / 03期
关键词：
Venture capital market; Stage specialization; VC market competition; DIVISION-OF-LABOR; VENTURE CAPITALISTS; DIVERSIFICATION; FIRMS; ENTREPRENEURS; INVESTMENT; IMPACT; EXTENT; POLICY; MONEY;
D O I：
10.1007/s11151-023-09898-x
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We investigate the relationship between competition and stage specialization in the venture capital (VC) markets. A typical successful entrepreneurial company goes through multiple stages of VC investments; but an average VC firm specializes and participates only in a subset of these stages. We hypothesize that a VC firm's decision to stage-specialize (or not) poses a trade-off between business expansion and competition mitigation. Both effects are influenced by the intensity of competition. Consistent with a prediction of the theoretical model, we find robust empirical evidence for a non-monotonic relationship-an inverted-U shape-between competition and stage specialization in the U.S VC markets between 1980 and 2012. This result is novel and can have interesting managerial and policy implications.
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页码：241 / 269
页数：29
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