Annamaria Conti

Show Me the Right Stuff: Signals for High Tech Startups

We present a theoretical model of startup signaling with multiple signals and potential differences in external investor preferences. For a novel sample of technology incubator startups, we empirically examine the use of patents and founder, friends, and family (FFF) money as such signals, finding that they are jointly endogenous to venture capital and business angel investment in the startups. For this sample, venture capitalists appear to value patents more highly than FFF money, while the reverse is true for business angels. Moreover, the impact of patents on venture capitalists is larger than the impact of FFF money on business angels.

Science and Engineering Ph.D. Students' Career Outcomes, by Gender.

We examine differences in the careers of men and women Ph.D.s from two major European universities. Having performed regression analysis, we find that women are more likely than men to be employed in public administration when the alternatives are either academia or industry. Between the latter two alternatives, women are more likely to be employed in academia. These gender differences persist after accounting for Ph.D.s’ and their supervisors’ characteristics. Gender gaps are smaller for Ph.D.s with large research outputs and for those who conducted applied research. Restricting the analysis to Ph.D.s who pursued postdoc training, women are less likely than men to be employed in highly ranked universities, even after controlling for their research outputs. Finally, we find gender differences in Ph.D.s’ appointment to professorship, which are explained by the Ph.D.s’ publication output and the quality of their postdoc training.

Venture Capital Investment Strategies Under Financing Constraints: Evidence from the 2008 Financial Crisis

This paper employs the 2008 financial crisis as an empirical setting to examine how investment strategies of venture capitalists (VCs) vary in the presence of a liquidity supply shock, and what the performance implications of these strategies are for their portfolio startups. We show that while, on aggregate, funded startups receive no less financing during the financial crisis than in non-crisis times, VCs allocate relatively more resources to startups operating in the VCs’ core sectors. We show that this skew allocation follows from VCs choosing to double down on their core-sector investing, rather than by a changed mix of investors or startups during the financial crisis. These effects are strongest for early-stage startups, for which information problems are most severe. Furthermore, these results are driven by the investment strategies of more-experienced VCs. Building on these findings, we find superior ex post performance among crisis-funded portfolio startups operating in more-experienced VCs’ core sectors.