The effects of VCs’ reputation on the ability of companies to raise capital in Italy and Sweden.

Abstract

Abstract This thesis investigates the topic of reputation within the venture capital market, the objective of this document is to observe the effect that venture capitalists’ reputation has on the ability of venture backed companies to raise capital and the syndication within different venture capital firms. The results of the empirical analysis conducted in this thesis shows that venture capitalists’ reputation has a positive effect on the ability of venture backed firms to raise capital, this result offer significant information to entrepreneurs to make a more thoughtful selection of investors and obtain the best possible result. The empirical analysis proposed in this thesis also investigate the effect that venture capitalists’ reputation has on syndication within venture capital firms, the results show a positive effect of reputation on the probability of firms to syndicate.