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The Importance of Trust for Investment: Evidence from Venture Capital
- joahua 16y agoIf it's behind a paywall and you have an edu address, try the email link function at the bottom. It's 26 pages (47 incl. references + tables). Fun snippet from their methodology: the data excludes buy-out investments, so as to highlight the importance of trust in the relationships studied. I wonder how this relates to "we're buying you for your brains, not your business" acquisitions that we see in tech sector? Another highlight for me is in the conclusion - "trust and contractual sophistication are complements, not substitutes". It rings true in my (limited!) experience that stronger contracts should tend to clarify and build trust, not challenge it.