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How Does Active Involvement Benefit Investors? Evidence from 85 Billion Cell Phone Signals Xiaoyong Fu

Dissertations & Theses @ University of Pennsylvania Available online

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Format:
Book
Thesis/Dissertation
Author/Creator:
Fu, Xiaoyong, author.
Contributor:
University of Pennsylvania. Finance., degree granting institution.
Language:
English
Subjects (All):
Finance.
Communication.
0508.
0459.
0501.
0429.
Local Subjects:
Finance.
Communication.
0508.
0459.
0501.
0429.
Physical Description:
1 electronic resource (77 pages)
Contained In:
Dissertations Abstracts International 86-12A
Place of Publication:
Ann Arbor : ProQuest Dissertations and Theses, 2025
Language Note:
English
Summary:
I investigate the reputation effects of active involvement, specifically examining how venture capitalists' (VCs') on-site meetings with portfolio companies affect VCs' reputations and future deal flow. By analyzing cell phone signals collected around VC and startup office buildings from 2018 to 2023, I measure VCs' involvement intensity and deal flow quality. Using exogenous variation in travel ease, I show that increased VC involvement leads them to receive better online reviews from entrepreneurs, attracting more and higher-quality new entrepreneurs to pitch, ultimately improving future investment outcomes. Furthermore, I document six stylized facts about VC involvement: (1) VCs visit underperforming portfolio companies more frequently; (2) the frequency of visits increases when portfolio companies are closer; (3) early-stage investments receive more frequent visits; (4) VCs and nontraditional investors (CVCs, PEs, hedge funds) visit at similar frequencies, while accelerators and incubators visit more often; (5) deals with more co-investors involve more overall visits, but each investor visits less frequently; and (6) larger VCs visit less frequently per deal
Notes:
Source: Dissertations Abstracts International, Volume: 86-12, Section: A.
Advisors: Taylor, Lucian A. Committee members: Goldstein, Itay; Zeng, Yao; Tang, Huan
Ph.D. University of Pennsylvania 2025
Local Notes:
School code: 0175
ISBN:
9798280760844
Access Restriction:
Restricted for use by site license

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