
David B. Audretsch
et al.
Published online:
01 January 2007
Published in print:
25 May 2006
Online ISBN:
9780199783663
Print ISBN:
9780195183511
Contents
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9.1 Entrepreneurship and Capital Markets 9.1 Entrepreneurship and Capital Markets
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9.2 Financing Entrepreneurship by Banks and Venture Capitalists 9.2 Financing Entrepreneurship by Banks and Venture Capitalists
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9.3 Hypotheses on the Mode of Entrepreneurial Finance 9.3 Hypotheses on the Mode of Entrepreneurial Finance
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9.4 Linking Venture Finance to Entrepreneurial Performance 9.4 Linking Venture Finance to Entrepreneurial Performance
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9.5 Conclusions 9.5 Conclusions
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Cite
Audretsch, David B., Max C. Keilbach, and Erik E. Lehmann, 'Entrepreneurial Finance', Entrepreneurship and Economic Growth (New York , 2006; online edn, Oxford Academic, 1 Jan. 2007), https://doi.org/10.1093/acprof:oso/9780195183511.003.0009, accessed 28 Apr. 2025.
Abstract
This chapter analyzes the role that accessing external finance plays for entrepreneurial firms. It differentiates between access to bank loans and equity provided by venture capital. It is shown that equity finance and bank finance are substitutes for knowledge-based entrepreneurial firms. The likelihood of an entrepreneurial firm being financed by venture capital is positively related to the degree of human capital incorporated in the board of management. Similarly, entrepreneurial firms in high-technology and science-based industries are more likely to be financed by venture capital.
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