• Are biotech investments different? The perspective of the Venture Capitalist

      Manigart, Sophie; Baeyens, Katleen; Vanacker, Tom (2004)
    • De rol van risicokapitaalfinanciering voor groei

      Baeyens, Katleen; Knockaert, Mirjam; Manigart, Sophie (2006)
    • Does venture capital affect financing patterns?

      Baeyens, Katleen; Manigart, Sophie (2004)
    • Dynamic financing strategies: The role of venture capital

      Baeyens, Katleen; Manigart, Sophie (2003)
    • Dynamic financing strategies: The role of venture capital

      Baeyens, Katleen; Manigart, Sophie (Journal of Private Equity, 2003)
    • Entrepreneurial companies' choice between long-term and short-term debt and the role of venture capital

      Baeyens, Katleen; Manigart, Sophie (SCMS Journal of Indian Management, 2006)
    • Financial and investment interdependencies in unquoted Belgian companies: the role of venture capital

      Manigart, Sophie; Baeyens, Katleen; Verschueren, I. (2002)
      Fortis, the leading Benelux financial group, had been a success story of successive mergers of bank and insurance companies, with leadership in corporate social responsibility (CSR). One year after the acquisition of the major Dutch financial conglomerate ABN AMRO, the global financial crisis caused the collapse of the Fortis group. The purpose of this article is to use the case study of Fortis’s recent fall as a basis for reflective considerations on the financial crisis, from stakeholder and ethical perspectives. A selected number of key events of the history of the dramatic crisis at Fortis will be analysed from different ethical frameworks. Special consideration will be given to fairness of communication, shareholder activism and conflicts of interests of CEO’s mergers opportunities. A confrontation between the CSR policy and the reality raises the fundamental questions why the powerful CSR guidelines and ethical principles did not help in the assessment of the risks.
    • Financiering van groeiende ondernemingen

      Manigart, Sophie; Baeyens, Katleen (2003)
    • Follow-on financing of venture capital backed companies: the choice between debt, equity, existing and new investors

      Baeyens, Katleen; Manigart, Sophie (2006)
      We study the financing strategies of 191 start-ups after they have received venture capital (VC) and thereby contribute to the staging literature. The VC backed start-ups have raised financing on 345 occasions over a five-year period after the initial VC investment. Surprisingly, bank debt is the most important source of funding for these young and growth-oriented companies, supporting the view that VC investors have a certifying role in their portfolio companies. Bank debt is available to firms with a lower demand for money, lower levels of risk and of information asymmetries, implying that staging of equity funding is less important for these firms. A firm only raises equity when it's debt capacity is exhausted, hinting that equity investors are investors of last resort. New equity is provided by the existing shareholders in 70% of the equity issues, supporting earlier findings that staged financing is important in venture capital financing. New shareholders invest when large amounts of funding are required and when risk and information asymmetries are high. We interpret these findings as support for the extended pecking order theory. In line with syndication arguments, new investors thus provide risk sharing opportunities and skills to screen and monitor and thereby reduce information asymmetries. New equity investors face adverse selection problems, however, in that only the most risky investments are syndicated. Keywords: financing strategy, venture capital, bank debt, external shareholders JEL classification: G32
    • Survival of venture capital backed companies

      Manigart, Sophie; Baeyens, Katleen; Van Hyfte, Wim (2001)
    • The impact of trust on private equity contracts

      Manigart, Sophie; Korsgaard, Audrey M.; Folger, R.; Sapienza, Harry J.; Baeyens, Katleen (2002)
      This paper adresses the impact of trust on private equity contracts. Trust between investor and entrepreneur is essential to help overcome control problems, especially in an environment with severe agency risks and incomplete contracts. In this study, information about the effects of trust is collected using a simulation with 144 entrepreneurs and investors. We find that trust has an impact on the desired contracts of entrepreneurs, but not on that of investors. Our findings suggest that for parties, faced with potentially large agency problems (investors), trust and control seem to play complementary roles. On the other hand, for parties faced with smaller agency problems (entrepreneurs), trust seems to be a substitute for control.
    • The survival of venture capital backed companies

      Manigart, Sophie; Baeyens, Katleen; Van Hyfte, Wim (Venture capital, 2002)
    • Venture capital

      Manigart, Sophie; Baeyens, Katleen (Praktijkgids Waardebepaling en Strategische Reorganisaties, 2002)
    • Venture capital

      Manigart, Sophie; Baeyens, Katleen (2002)
    • Venture capitalists' selection process: the case of biotechnology proposals

      Baeyens, Katleen; Vanacker, Tom; Manigart, Sophie (2005)
      The paper analyses venture capitalists' selection process in biotechnology ventures. Biotech ventures operate in an extremely risky environment making this an interesting research setting. The majority of venture capitalists exclude certain biotech sectors ex-ante because of regulatory uncertainty, the long development process to a market ready product and the difficulty to understand the technology. The more thorough due diligence process focusses on financial, market and technology criteria. Management team capabilities are more important for later stage investors, whereas early stage investors expect to have an impact on the future recruiting of professional managers. Despite the higher risk of biotech investments, we find no evidence that VCs require higher hurdle rates or more complete contracts for these investments, compared to investments in other technology-based companies. The most important reason for not reaching an investment agreement is disagreement over valuation, due to large differences in risk perception between entrepeneurs and venture capitalists and the lack of a standard valuation tool for biotech projects. Keywords: venture capital, selection process, biotechnology
    • Venture capitalists' selection process: the case of biotechnology proposals

      Baeyens, Katleen; Vanacker, Tom; Manigart, Sophie (International Journal of Technology Management, 2006)