Smart Capital in German Start-Ups - An Empirical Analysis

Schaefer, Dorothea; Schilder, Dirk

doi:10.2139/ssrn.1019423

Smart Capital in German Start-Ups - An Empirical Analysis

Jena Economic Research Paper No. 2007-015

26 Pages Posted: 5 Oct 2007

See all articles by Dorothea Schaefer

Dorothea Schaefer

German Institute for Economic Research (DIW Berlin); JIBS

Dirk Schilder

Boston Consulting Group

Date Written: May 2007

Abstract

It is still an open question what kind of smart capital relational investors actually supply. We divide smart capital into several components and conduct a survey among 85 German suppliers of start-up finance. The results show that the degree of smartness is determined by the financial product used and also by the financiers' institutional background, the duration of the investment and the stage of development of the firm being financed.

Keywords: Smart capital, start-up financing, venture capital, banks

JEL Classification: G21, G24, D21, M13, O16

Suggested Citation: Suggested Citation

Schaefer, Dorothea and Schilder, Dirk, Smart Capital in German Start-Ups - An Empirical Analysis (May 2007). Jena Economic Research Paper No. 2007-015, Available at SSRN: https://ssrn.com/abstract=1019423 or http://dx.doi.org/10.2139/ssrn.1019423