Building Relationships Early: Banks in Venture Capital
- Topics:
- Commercial Banking
- Tags:
- Bank,
- Finance,
- Financing Startups,
- Investment,
- Venture Capital
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Overview: The importance of an investor's organizational structure is increasingly recognized in modern finance. This paper examines the role of banks in the US venture capital market. Theory suggests that unlike independent venture capital firms, banks can seek complementarities between their venture capital and lending activities. The paper's empirical analysis suggests that banks use their venture capital investments to build relationships for their lending activities.
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Format: PDF | Size: 97KB | Date: May 2004 | Pages: 42



