The regrets of losing a great company to invest in may or may not last long. But that doesn’t mean the loss doesn’t hurt. According to research by Ramana Nanda and Matthew Rhodes-Korpf, there are three factors affecting the finance that pours in for an entrepreneurial venture — differences in the costs of experimentation, informal culture at institutions, shocks to availability of capital. It was proven that as the cost of experimentation falls, the investments become “long shot bets” and investments made by crowds of investors in these projects are going to be more likely to fail.
Insight
Funding ideas
What are the three factors that determine the finance pouring in for an entrepreneurial venture?
Editor's Pick
Most Popular
Summer wine and salad
Kishore Singh - January 19, 2015
A double topping for growth
Meghna Maiti - January 15, 2015
The million-dollar question: Is investing a game of luck or skill?
Shankar Sharma - May 04, 2021
Scriptures for success
Kripa Mahalingam - January 27, 2015
Where's the party tonight?
Aditi Saxena - January 27, 2015