The entrepreneur's choice of a venture capital firm: Empirical evidence from two VC fund portfolios

- We investigate the determinants of entrepreneurs' choices of a venture capitalist.
- We use data from two types of French venture capital firms.
- The independent firm finances more ventures requiring high support quality.
- The bank-affiliated firm favors ventures with higher liquidation value.

We examine the determinants of entrepreneurs' choices between an independent and a bank-affiliated venture capital firm operating in the same region of France. We find empirical support for a significant impact of the firm's support quality and the venture's liquidation value.