"Will the Old Venture Model Work with New Web-Based Start-ups?"

New research from my colleague Professor Robert Hendershott in the Department of Finance at Santa Clara University suggests that the traditional venture capital industry, evolved for relatively capital intensive start-ups like semiconductor firms, is a poor fit for the next generation of web-based start-ups. However, the same forces that make venture capital a poor fit also make venture capital less relevant, providing an alternative path for entrepreneurs to create the next cohort of leading web firms. You can download the full paper here.