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How Does Active Involvement Benefit Investors? Evidence from 85 Billion Cell Phone Signals Xiaoyong Fu
- Format:
- Book
- Thesis/Dissertation
- Author/Creator:
- Fu, Xiaoyong, author.
- 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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