The role of venture quality and investor reputation in the switching phenomenon to different types of venture capitalists

We examine how the perceived quality of a venture and the reputation of the incumbent Venture Capitalist (VC) are affecting the propensity to switch from an independent VC (IVC) to another IVC, to a governmental (GVC), a bank-affiliated (BVC) and a corporate (CVC). We find that high perceived quality ventures are more likely to switch from a IVC to another IVC, for whatever level of reputation of the incumbent. The quality of the venture matters...