An investor’s bad reputation may not be a deterrent for startups seeking capital — as long as the investor stays out of the startup’s business.

A new paper from Bill Bill Schulze and Robert Wuebker shows that startups are willing to accept funds from venture capital firms embroiled in lawsuits.

“The results are intriguing,” the authors said. “[They reveal] underexplored relationships between corporate reputation(s) and the impact on performance.”

Read the full story in Institutional Investor.

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