Published Papers
Published Papers
Micro Venture Capital (with Mario Amore and Annamaria Conti).
Strategic Entrepreneurship Journal (2023)
Abstract:
We analyze the new and unexplored phenomenon of micro venture capital (VC). Using a large dataset of US investors and their investees from 2000 to 2022, we document significant differences between micro and traditional VC. Although micro VCs invest in riskier startups, namely, early-stage ventures initiated by inexperienced founders, they are less likely to syndicate and stage their investments and to replace the initial founders. These differential strategies, at least partly, reflect differences in organizational features and translate into poorer performance for startups supported by micro than by traditional VCs. We additionally uncover significant differences between the financial strategies of micro VC and angel investors. Collectively, our results suggest micro VC investors are less able to create value via screening and monitoring activities due to a mix of smaller capital endowments, less sophisticated limited partners, and poorer human capital.
Abstract:
A growing literature is devoted to understanding how companies react to major external shocks. Contributing to this research, we study how the presence of families in corporate ownership and leadership affected the reaction of firms to the COVID-19 pandemic. Using data from Italy, we find that family firms exhibited higher market performance and operating profitability than other firms during the pandemic period. This result is stronger for companies without relevant minority investors and with multiple family shareholders. Delving into the mechanisms, we show that the outperformance of family firms is driven by more efficient use of labor and a lower drop in revenues. Collectively, our results expand existing research by showing how family ties shape the response to adverse events.
Papers under Review
Family Firms in Entrepreneurial Finance: The Case of Corporate Venture Capital (with Mario Amore and Samuele Murtinu).
Status: R&R at Journal of Banking and Finance
Abstract:
Research at the crossroads of entrepreneurship, strategy, and finance has focused on corporate venture capital (CVC)’s decision-making and sources of value creation. We study a neglected aspect in this literature: the presence of families as dominant owners of the CVCs’ parent organizations. We show for the first time that families are an important engine of corporate venturing activities: about one-third of CVC deals in the US from 2000 to 2017 originated from family firms. Moreover, we find marked differences in the investment strategy and outcomes of family and non-family CVCs. Family CVCs (i) syndicate more, especially when investing in informationally opaque ventures, (ii) invest more in ventures that are closer to the parent in terms of geography and industry, (iii) experience a higher performance in terms of ventures’ successful exit and post-IPO returns, and (iv) invest more during financial crises. Collectively, our results provide novel evidence on the role of parents’ organization and ownership for CVC activities.
Book Chapters
University Venture Capital (with Mario Amore and Samuele Murtinu), The Palgrave Encyclopedia of Private Equity (2023)
Human Capital in Family Offices (with Mario Amore and Samuele Murtinu), Family Office and Wealth Management Handbook (forthcoming)
CONFERENCES:
Behavioral Perspectives on Family Firms, Paris (2024)
ECGI Conference, Vilnius (2024)
BSE Summer Forum Entrepreneurship, Barcelona (2024)
Entrepreneurial Finance Annual Conference, Munich(2024)
INSEAD Doriot Entrepreneurship Conference, Singapore (2023)
Entrepreneurial Finance Annual Conference, Antwerp (2023)
Behavioral Perspectives on Venture Capital, Copenhagen (2023)
Corporate Finance Day, Amsterdam (2022)
Entrepreneurial Finance Annual Conference, Bath (2022)
Academy of Management Annual Conference, Virtual (2022)
Asian Financial Association Annual Meeting, Virtual (2022)
European Family Business Research Network, Virtual (2022)
Financial Markets and Corporate Governance, Virtual (2022)
Annual International Corporate Governance Society Conference, Virtual (2021)
Strategic Management Society Annual Conference, Virtual (2021)
DOCTORAL WORKSHOPS:
Consortium on Competitiveness and Cooperation (CCC), San Gallen (2023)
Entrepreneurial Finance Doctoral and Early Career Colloquium, Antwerp (2023)
Strategy Science Doctoral Workshop, New York (2022)
Academy of Management Entrepreneurship Doctoral Consortium, Virtual (2021)
SKEMA KTO Workshop, Virtual (2021)