We show theoretically that a critical determinant of the attractiveness of venture capital (VC)-backed entrepreneurship for high-earning potential founders is the expected time to develop a startup's initial product. This is because founder-CEOs' cash compensation increases substantially after product development, alleviating the nondiversifiable risk that founders face at startup birth. Consistent with the model's predictions of where the supply of entrepreneurial talent is likely to be most constrained, we find that technological shocks differentially altering the expected time to product across industries can explain changes in both the rate of entry and characteristics of individuals selecting into VC-backed entrepreneurship.

中文翻译：

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创始人兼首席执行官的薪酬和风险投资支持创业的选拔


我们从理论上证明，风险投资（VC）支持的创业对高收入潜在创始人的吸引力的一个关键决定因素是开发初创公司初始产品的预期时间。这是因为创始人兼首席执行官的现金薪酬在产品开发后大幅增加，减轻了创始人在初创公司诞生时面临的不可分散的风险。与该模型对创业人才供应可能最受限制的地方的预测一致，我们发现，技术冲击不同地改变了跨行业的预期产品时间，可以解释进入率和选择风险投资的个人特征的变化。支持创业。