

The Importance of Trust for Investment: Evidence from Venture Capital - mazsa
https://papers.nber.org/papers/w16923

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joahua
If 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.

