This paper attempts to extend the Certification Paradigm--mainly used in the literature as an explanation for IPO underpricings--to provide guidelines to entrepreneurs in their efforts to secure funding for new ventures. After extending the model to cases of pre-venture-capital start-up firms, along with the practical implications that would follow, efforts are made to derive some testable hypotheses for further research on the topic.
G32, G24, M13, L25
Capital , Entrepreneur , Financing , IPO , Venture Capital
"Venture Financing and Role of Certification: A Theoretical Perspective,"
The Journal of Entrepreneurial Finance:
1, pp. 156-160.
Available at: http://digitalcommons.pepperdine.edu/jef/vol6/iss1/10