larger teams were more likely to contain individuals
with entrepreneurial human capital. Following
Table 1, we cautiously interpret these results
as follows: when management team members hail
from more entrepreneurially prominent organizations,
VCs interpret this as a positive cue. However,
this information is learned independently of
its inclusion in the business planning documents.
Robustness checks
As described in the Data section, we likely undersample
high-quality firms and, therefore, underestimate
the population success rate of successful
VC fund-raising. The rare-events logit technique
allows us to explore how the results vary
if we change our assumption about the population
likelihood of a positive event. Intuitively,
when we specify that the population success rate
is higher than the sample success rate, we increase