RT Journal Article SR Electronic T1 Are Some Venture Capitalists More Likely Than Others to Replace Founder-CEOs? JF The Journal of Private Equity FD Institutional Investor Journals SP 19 OP 29 DO 10.3905/JPE.2009.12.2.019 VO 12 IS 2 A1 Dmitry Khanin A1 J. Robert Baum A1 Ofir Turel A1 Raj V Mahto YR 2009 UL https://pm-research.com/content/12/2/19.abstract AB Studies of VCs' investment criteria describe the quality of management team as key determinant of venture financing. We contend, however, that some VCs may be willing to fund ventures headed by poor administrators with the expectation to replace them in the future. We conjecture that VCs with higher risk tolerance, greater involvement in venture governance, and proclivity for trust-based collaboration with coinvestors will be prone to take on financing of robust ventures headed by weak leaders. A survey and interviews with 50 U.S. VCs supported these hypotheses.TOPICS: Private equity, manager selection, quantitative methods, analysis of individual factors/risk premia