| Table 3 Significant Actual Investment and Contractual Control Differences |
BAs’ |
VCs’ |
BAs’ |
VCs’ |
P value |
|
| Transaction costs (legal etc.) | £888 |
£39,875 |
1.9K |
63.6K |
<0.001 |
| Transaction costs (% total investment) | 2.7% |
5.4% |
6.1 |
7.2 |
0.004 |
| Length of negotiations | 6.22 |
7.47 |
6.6 |
9.2 |
More for VC (based on qualitative data) |
| Rigor of investment contracts | — |
— |
— |
— |
More for VC (based on qualitative data) |
| Size of investment | £54,585 |
£945,363 |
71.9K |
1,350K |
<0.001 |
| Investor’s initial equity % | 23.6% |
31.7% |
20.2 |
17.7 |
0.001 |
| Number of entrepreneurs investor has replaced (average) | .45 |
5.7 |
1.2 |
9.5 |
<0.001 |
| Number of entrepreneurs investor has replaced (% of investments made) | 7.1% |
17.1% |
17.0 |
16.4 |
<0.001 |