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Traits and performance of the minority venture-capital industry

Publication ,  Journal Article
Bates, T; Bradford, W
Published in: Annals of the American Academy of Political and Social Science
September 1, 2007

This study analyzes the performance of investments made by venture-capital (VC) funds that specialize in financing minority business enterprises (MBEs). Existing studies document that MBEs have less access to financing-equity as well as debt-than similarly situated firms owned by nonminority whites. The apparent existence of a discriminatory financing environment creates an underserved market and, hence, attractive opportunities are available to firms capable of identifying and serving MBE financing needs. Analyzing cash-flow data on VC investments, we find that the minority-oriented funds earned yields on their realized equity investments that were slightly higher than the returns reported by mainstream VC funds. Considering differences in methodologies used to generate rate-of-return data for the MBE-as opposed to the nonminority-oriented funds-we conclude that the minority VC funds are earning yields on their realized investments that are at least equivalent to those of the broader VC industry.

Duke Scholars

Published In

Annals of the American Academy of Political and Social Science

DOI

EISSN

1552-3349

ISSN

0002-7162

Publication Date

September 1, 2007

Volume

612

Issue

2

Start / End Page

95 / 107

Related Subject Headings

  • General Arts, Humanities & Social Sciences
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Bates, T., & Bradford, W. (2007). Traits and performance of the minority venture-capital industry. Annals of the American Academy of Political and Social Science, 612(2), 95–107. https://doi.org/10.1177/0002716207303580
Bates, T., and W. Bradford. “Traits and performance of the minority venture-capital industry.” Annals of the American Academy of Political and Social Science 612, no. 2 (September 1, 2007): 95–107. https://doi.org/10.1177/0002716207303580.
Bates T, Bradford W. Traits and performance of the minority venture-capital industry. Annals of the American Academy of Political and Social Science. 2007 Sep 1;612(2):95–107.
Bates, T., and W. Bradford. “Traits and performance of the minority venture-capital industry.” Annals of the American Academy of Political and Social Science, vol. 612, no. 2, Sept. 2007, pp. 95–107. Scopus, doi:10.1177/0002716207303580.
Bates T, Bradford W. Traits and performance of the minority venture-capital industry. Annals of the American Academy of Political and Social Science. 2007 Sep 1;612(2):95–107.
Journal cover image

Published In

Annals of the American Academy of Political and Social Science

DOI

EISSN

1552-3349

ISSN

0002-7162

Publication Date

September 1, 2007

Volume

612

Issue

2

Start / End Page

95 / 107

Related Subject Headings

  • General Arts, Humanities & Social Sciences