Yael Hochberg
Yael V. Hochberg

FINANCE; ENTREPRENEURSHIP & INNOVATION; HEALTH ENTERPRISE MANAGEMENT
Assistant Professor of Finance

Print Overview
Professor Hochberg's research and teaching interests are focused on entrepreneurship, innovation, and the financing of entrepreneurial activity. Her research focuses on the venture capital industry, financial networks and corporate governance and compensation policies. In addition to her doctorate in finance from Stanford, she holds an undergraduate degree in Industrial Engineering and Management from the Technion-Israel Institute of Technology and a masters degree in Economics from Stanford University.

Professor Hochberg’s research has been published in top tier journals, including the Journal of Finance, the Review of Financial Studies, the Journal of Accounting Research, and the Journal of Financial and Quantitative Analysis, and has been presented at numerous universities and governmental bodies around the world. She is an Associate Editor at the Review of Finance. Prof. Hochberg also co-administers the National Seed Accelerator Rankings.

Prior to arriving at Kellogg, Professor Hochberg was an Assistant Professor of Entrepreneurship and Finance at the Johnson School of Management at Cornell University, and was employed in the technology industry in both larger and startup companies. She holds an affiliation with the Kellogg School’s Heizer Center for Private Equity and Venture Capital.

Areas of Expertise
Venture (Biotechnology)
Corporate Finance
Corporate Governance
Entrepreneurial Finance
Entrepreneurship
Small Business Management
Venture Capital and Private Equity
Print Vita
Education
PhD, 2003, Business Administration, Stanford University
MA, 2000, Economics, Stanford University
BS, 1997, Industrial Engineering, Management, Technion-Israel Institute of Technology, Summa Cum Laude

Academic Positions
Faculty Research Fellow, National Bureau of Economic Research (NBER), 2010-present
Assistant Professor of Finance, Kellogg School of Management, Northwestern University, 2005-present
Assistant Professor of Finance and Entrepreneurship, Johnson School, Cornell University, 2003-2005

Grants and Awards
Citation of Excellence, Emerald, 2011
Best symposium paper, "Informal Hold-up and Performance Persistence in Venture Capital", written with Alexander Ljungqvist and Annette Vissing-Jorgensen, on private equity and private equity fund of funds, European Finance Assocation
Top-cited paper, written with Alexander Ljungqvist and Yang Lu, published in the 2007 Journal of Finance (as reported by Wiley-Blackwell), for "Whom You KNow Matters: Venture Capital Networks and Investment Performance."

Editorial Positions
Associate Editor, Review of Finance, June 2010-present

 
Print Research
Research Interests
Empirical corporate finance, venture capital, entrepreneurial finance, corporate governance

Articles
Hochberg, Yael V. and Joshua Rauh. Forthcoming. Local Overweighting and Underperformance: Evidence from Limited Partner Private Equity Investments.
AbstractLink
Hochberg, Yael V.. 2012. Venture Capital and Corporate Governance in the Newly Public Firm. Review of Finance. 16(2): 429-480.
Hochberg, Yael V., Alexander Ljungqvist and Yang Lu. 2010. Networking as a Barrier to Entry and the Competitive Supply of Venture Capital. Journal of Finance. 65(3)
Abstract
Hochberg, Yael V. and Laura Lindsey. 2010. Incentives, Targeting and Firm Performance: An Analysis of Non-Executive Stock Options. Review of Financial Studies. 23(11): 4148-4186.
Hochberg, Yael V., Paola Sapienza and Annette Vissing-Jorgensen. 2009. A Lobbying Approach to Evaluating the Sarbanes-Oxley. Journal of Accounting Research. 47(2): 519-583.
AbstractLink
Hochberg, Yael V., Alexander Ljungqvist and Yang Lu. 2007. Whom You Know Matters: Venture Capital Networks and Investment Performance. Journal of Finance. 62(1): 251-301.
Abstract
Ang, Andrew, Li Gu and Yael V. Hochberg. 2007. Is IPO Underperformance a Peso Problem?. Journal of Financial and Quantitative Analysis. 42(3)
AbstractLink
Working Papers
Mazzeo, Michael, Yael V. Hochberg and Ryan McDevitt. 2012. Market Structure and Competition in the Venture Capital Industry.
Hochberg, Yael V., Alexander Ljungqvist and Annette Vissing-Jorgensen. 2011. Informational Hold-up and Performance Persistence in Venture Capital.
AbstractLink
Bhagwat, Vineet, Yael V. Hochberg. 2011. Specialization and Strategic (Re)Investment Decisions in Venture Capital.
Hochberg, Yael V., Michael Mazzeo and Ryan McDevitt. 2011. Specialization and Competition in the Venture Capital Industry.
Hochberg, Yael V., Laura Lindsey and Mark Westerfield. 2011. Partner Choice in Co-Investment Networks: Evidence from Venture Capital.
Hochberg, Yael V. and Tobias Muhlhofer. 2011. Market Timing and Investment Selection: Evidence from Real Estate Investors.
Hochberg, Yael V. and Mark Westerfield. 2011. The Size and Specialization of Direct Investment Portfolios.

 
Print Teaching
Teaching Interests
Venture capital, entrepreneurial finance
Full-Time / Part-Time MBA
Private Equity and Venture Capital (FINC-445-0)

This course counts toward the following majors: Entrepreneurship & Innovation, Finance.

This course uses the case method to study the private equity and venture capital sector from a finance perspective. The primary goal is to gain a broad understanding of the concepts and institutions involved in private equity and venture capital markets. The course will explore private equity and venture capital primarily from the viewpoint of partnership itself. It focuses on the private equity and venture capital partnership’s role in choosing, valuing, structuring, and managing investments. The class will consider particular investments made by PEVC partnerships and analyze the issues faced in cashing out of investments. The course also explores the issues faced in structuring PEVC partnerships and in raising funds for them. Consideration is given to the different incentives faced by PEVC partnerships and the investors in those partnerships, and why contractual terms take the forms they typically do. The course assumes knowledge of corporate finance from the start at the level of Finance II or Finance I/II. These courses may not be taken concurrently

Case Studies in Venture Investment (FINC-471-0)

This course counts toward the following majors: Entrepreneurship & Innovation, Finance, Health Enterprise Management

This course is aimed at students who are considering a career in the entrepreneurial sector, including those who wish to start new ventures, join new and growing organizations, or to work in private equity, venture capital or business development.

The class is based on a series of cases that focus on the venture capital investment process, evaluation of business ventures and the subsequent management of such ventures. The primary perspective is that of the venture capitalist in assembling and evaluating information, preparing forecasts, assessing risks, developing and negotiating investment structure and terms, and deciding whether to invest. Cases also focus on management and financial problems and policy issues, and the relationship between venture capitalists and entrepreneurs. The secondary perspective is that of the entrepreneur and the techniques and skills employed in managing growing enterprises. The course will revolve around student discussion and analysis of real-life business plans, with participation of the involved venture capitalists and entrepreneurs.

Note: The course will consist of three lecture sessions and six to seven case sessions. Please note that case sessions will likely run 3.5-4 hours, whereas lecture sessions will be likely run shorter (the total academic hours will remain 30). Students will receive an exact schedule prior to the start of the quarter.

FINC-445 is a prerequisite for this course, but they may be taken concurrently.

For more information, please go to: http://www.kellogg.northwestern.edu/faculty/hochberg/htm/932info.html.

Venture Lab (V-Lab) (FINC-915-0)

This course counts toward the following majors: Finance, Entrepreneurship and Innovation

This new course offers students an experiential learning opportunity in the venture capital industry. For the duration of the class term, each student will be placed with a venture capital firm and will be required to submit a project report (presentation) at the end of the quarter based on work the student completed for the firm throughout the academic quarter. The insights from this hands-on course will be most beneficial to students who have not had extensive experience in the venture capital space, but who would like to pursue a career in that field. More information can be found at: http://www.kellogg.northwestern.edu/research/heizer/lab.htm. Note: This course may not be dropped after the first day of the quarter.

Executive MBA
Entrepreneurial Finance & Venture Capital (FINCX-446-0)
Entrepreneurial Finance teaches prospective entrepreneurs the fundamentals of entrepreneurship with a focus on finance. Topics include pro forma development and review, business valuation models, cash flow analysis and raising capital.