Events

Mr. Qian Wang
Ph.D. Candidate in Management
SC Johnson College of Business
Cornell University

Young founders often face early-stage resource constraints. This study examines whether teaming with a senior founder helps young founders overcome financial constraints. I theorize a complementarity–coordination tradeoff: senior founders contribute accumulated experience and help signal venture quality, but age gaps within founding teams can also create coordination costs related to control, commitment, and slower decision-making. Using data on U.S. venture capital-backed startups, I find that startups with young founders receive larger initial VC investments when teaming with a senior founder. However, this financing benefit is weaker when the senior founder does not serve as CEO or maintains outside employment. Moreover, startups with young founders take longer to secure their first VC financing when teaming with a senior founder.