Document Type
Article
Publication Date
1-1-2006
Abstract
In Israel\, an innovative program called Entrepreneur/ Executive in Residency (EIR) was initiated by venture capital firms to increase the probability that ICT startup/seed ventures will be funded. EIR programs help VCs to maintain 6%-10% of their portfolio (measured in invested dollars per year) in ventures in the startup/seed stage. This research\, based on qualitative interviews with Israeli VC executives and entrepreneurs who participate in EIR programs\, promotes understanding about how EIR programs work to increase the perceived confidence coefficient of the VC partners until it overcomes the “equity gap” that exists in assessing startup/seed entrepreneurial deals. Variant types of trust (goodwill trust and competence trust) and the exercise of certain controls (most importantly\, social control) are seen to influence perceived future transaction and monitoring costs that comprise the “equity gap.”,Doctorate of Management Programs
Keywords
Venture capital, Entrepreneurship--United States
Rights
© The Author(s). Kelvin Smith Library provides access for non-commercial, personal, or research use only. All other use, including but not limited to commercial or scholarly reproductions, redistribution, publication or transmission, whether by electronic means or otherwise, without prior written permission is strictly prohibited.
Department/Center
Design & Innovation
Recommended Citation
Schwarzkopf, Jimmy, "Closing the "Equity Gap" in Startup/Seed Investment for ICT Ventures (Israeli Experience)" (2006). Student Scholarship. 628.
https://commons.case.edu/studentworks/628