The Two-Stage Model of Entrepreneurs Financing Based on the EntryExit Decision
Joint Authors
Wang, Kaihong
Mingyang, Yin
Jiani, Zuo
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-13, 13 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-06-20
Country of Publication
Egypt
No. of Pages
13
Main Subjects
Abstract EN
Normally entrepreneur would raise fund from angel investors during the initial round.
If the venture program was by then successful, the entrepreneur would then continue the fund-raising process from venture capitalist.
By adopting the convertible preferred stock, we managed to construct the two-stage angel investment decision process.
This research reveals the following: (1) The probability of the first stage’s success has negative relationships with levels of priority dividend in both first and second stages, as well as with the venture capitalist’s proportion of shares.
(2) The probability of the second stage’s success has negative relationships with the venture capitalist’s proportion of shares and the dividend level of both first and second stage funding.
(3) There has been a threshold of dividend distribution, which belongs to angel investor.
While the level of angel investor’s shares is higher than the threshold, AN would decide to join the second phase of the program; otherwise, AN would exit the project at the end of the first stage.
American Psychological Association (APA)
Wang, Kaihong& Mingyang, Yin& Jiani, Zuo. 2018. The Two-Stage Model of Entrepreneurs Financing Based on the EntryExit Decision. Discrete Dynamics in Nature and Society،Vol. 2018, no. 2018, pp.1-13.
https://search.emarefa.net/detail/BIM-1152818
Modern Language Association (MLA)
Wang, Kaihong…[et al.]. The Two-Stage Model of Entrepreneurs Financing Based on the EntryExit Decision. Discrete Dynamics in Nature and Society No. 2018 (2018), pp.1-13.
https://search.emarefa.net/detail/BIM-1152818
American Medical Association (AMA)
Wang, Kaihong& Mingyang, Yin& Jiani, Zuo. The Two-Stage Model of Entrepreneurs Financing Based on the EntryExit Decision. Discrete Dynamics in Nature and Society. 2018. Vol. 2018, no. 2018, pp.1-13.
https://search.emarefa.net/detail/BIM-1152818
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1152818