I model positive sorting of entrepreneurs across the high and low value-added segments of the venture capital market. Aiming to attract high-quality entrepreneurs, inefficiently many venture capitalists (VCs) commit to provide high value-added by forming small portfolios. This draws the marginal entrepreneur away from the low value-added segment, reducing match quality in the high value-added segment too. There is underinvestment. Multiple equilibria may emerge, and they differ in aggregate investment. The model rationalizes evidence on VC returns and value-added along fundraising “waves” and when the cost of entrepreneurship falls, and generates untested predictions on the size and value-added of venture capital.

中文翻译：

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风险投资的均衡规模与增加值

我对风险投资市场高附加值和低附加值部分的企业家进行了积极排序。为了吸引高质量的企业家，许多风险投资家（VC）致力于通过形成小型投资组合来提供高附加值，但效率低下。这使得边缘企业家远离低附加值细分市场，也降低了高附加值细分市场的匹配质量。存在投资不足的情况。可能会出现多重均衡，并且它们的总投资不同。该模型合理化了风险投资回报和融资“浪潮”期间以及创业成本下降时增值的证据，并对风险投资的规模和增值产生了未经检验的预测。