Serial Entrepreneurship and Venture Capital: Advantages from Experience and Perceptions

Abstract: Serial entrepreneurs are more successful than others. This thesis uses a sample of venture capital-backed firms that went public to isolate effects of two established hypotheses. We test the signaling and experience hypotheses and find evidence that successful serial entrepreneurs benefit from perceptions of their ability, even when compared to similarly talented founders. We also find evidence that previously successful serial entrepreneurs outperform novices, particularly through holding important roles and attracting more investment. These results are robust to a variety of specifications and endogeneity issues.