Investor heterogeneity and venture performance
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In: Journal of Business Venturing, Vol. 41, No. 1, 106524, 01.2026.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Investor heterogeneity and venture performance
AU - Mönkemeyer, Marwin
AU - Rennertseder, Kathrin
AU - Schröder, Henning
N1 - Publisher Copyright: © 2025 The Authors
PY - 2026/1
Y1 - 2026/1
N2 - This study explores the relationship between investor heterogeneity and firms’ post-seed funding performance. We find a statistically and economically significant negative association of investor heterogeneity on both a firm’ s likelihood of obtaining new funding and the amount raised in subsequent funding rounds. These findings suggest that greater heterogeneity among investors may impair board efficacy and weaken the quality of venture governance. Moreover, the marginal effect of investor heterogeneity is non-linear and diminishes over the course of a venture’ s funding lifecycle. Our results remain robust after accounting for endogeneity concerns and alternative measures of investor culture.
AB - This study explores the relationship between investor heterogeneity and firms’ post-seed funding performance. We find a statistically and economically significant negative association of investor heterogeneity on both a firm’ s likelihood of obtaining new funding and the amount raised in subsequent funding rounds. These findings suggest that greater heterogeneity among investors may impair board efficacy and weaken the quality of venture governance. Moreover, the marginal effect of investor heterogeneity is non-linear and diminishes over the course of a venture’ s funding lifecycle. Our results remain robust after accounting for endogeneity concerns and alternative measures of investor culture.
KW - Cultural heterogeneity
KW - Entrepreneurial finance
KW - Funding success
KW - Venture capital
KW - Venture performance
KW - Management studies
UR - http://www.scopus.com/inward/record.url?scp=105017133155&partnerID=8YFLogxK
U2 - 10.1016/j.jbusvent.2025.106524
DO - 10.1016/j.jbusvent.2025.106524
M3 - Journal articles
AN - SCOPUS:105017133155
VL - 41
JO - Journal of Business Venturing
JF - Journal of Business Venturing
SN - 0883-9026
IS - 1
M1 - 106524
ER -