Equity Investment by Startup Board Members Can Attract New Capital

8 Pages Posted: 7 Aug 2018

See all articles by Craig R. Everett

Craig R. Everett

Pepperdine University - Graziadio School of Business and Management

James W. Casparie

The Venture Alliance

Date Written: July 17, 2018

Abstract

Potential outside investors generally do not want to be the first person to write a check to the startup. They look for previous financial investment from the founders, friends and family, and outside members of the board of directors as evidence that the entrepreneurs are serious and legitimate. Data from the Q4 2017 Pepperdine Private Capital Access Survey shows a positive and significant relationship between revenue growth and outside director investment in the startup.

Keywords: Small Business, Entrepreneurship, Startups, Angel Investment, Venture Capital, Governance

JEL Classification: G24, G34, L26, M13

Suggested Citation

Everett, Craig R. and Casparie, James W., Equity Investment by Startup Board Members Can Attract New Capital (July 17, 2018). Available at SSRN: https://ssrn.com/abstract=3215424 or http://dx.doi.org/10.2139/ssrn.3215424

Craig R. Everett (Contact Author)

Pepperdine University - Graziadio School of Business and Management ( email )

24255 Pacific Coast Hwy
Malibu, CA 90263
United States
(310) 506-8543 (Phone)

HOME PAGE: http://bschool.pepperdine.edu/faculty/default.php?faculty=craig_everett

James W. Casparie

The Venture Alliance

CA
United States

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