Equity Investment by Startup Board Members Can Attract New Capital
8 Pages Posted: 7 Aug 2018
Date Written: July 17, 2018
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: Suggested Citation