Yael Hochberg
Yael V. Hochberg

Visiting 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)
Venture Capital and Private Equity
Print Vita
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

Hochberg, Yael V. and Joshua Rauh. Forthcoming. Local Overweighting and Underperformance: Evidence from Limited Partner Private Equity Investments.
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)
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.
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.
Ang, Andrew, Li Gu and Yael V. Hochberg. 2007. Is IPO Underperformance a Peso Problem?. Journal of Financial and Quantitative Analysis. 42(3)
Working Papers
Hochberg, Yael V., Alexander Ljungqvist and Annette Vissing-Jorgensen. 2011. Informational Hold-up and Performance Persistence in Venture Capital.
Arie, Guy, Vineet Bhagwat and 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
Entrepreneurial Finance and Venture Capital (FINC-445-0)

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

This course uses the case method to study entrepreneurial finance and venture capital decision focusing on the funding decisions of start-ups (fast growing entrepreneurial firms). The goal is to understand how entrepreneurs can raise funds and how venture capital partnerships and growth equity funds choose, value, structure, fund, and manage their investments. The course covers all stages of the financing process, from startup to harvest. Several cases concern technology-based businesses, though the emphasis is on gaining insights into entrepreneurial finance, not technology per se. The course will go into great details with respect to structuring multi-staged financings and valuing entrepreneurial ventures. In addition, the course provides insights on how venture capital partnership work, why do they take the forms they do, and where the crucial problems and opportunities for innovation exists. Consideration is given to the incentives faced by venture capital partnerships and the investors in those partnerships, and how to properly make financing decisions and negotiate contractual terms. Emphasis is given to high growth start-ups searching for funding in the US and venture capital funding as opposed to more traditional entrepreneurial and family firms operating globally (see FINC945 for these topics) and to Leverage Buyouts (see FINC-448 for LBOs). The course is aimed primarily at people who may be involved in an entrepreneurial venture at some point in their careers whether in a large organization, a turnaround, a management buyout or a startup. The course is also useful for venture capital careers.

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

This course counts toward the following majors: 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.

Venture Lab (V-Lab) (FINC-915-0)
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. Registration for this course is by application only.
Note: This course may not be dropped after the first day of the quarter.

Executive MBA
Entrepreneurial Finance & Venture Capital (FINCX-446-0)
Entrepreneurial activity has been a potent source of innovation and job generation in the global economy. In the U.S., the majority of new jobs are generated by new entrepreneurial firms. The financial issues confronting entrepreneurial firms are drastically different from those faced by established companies. The focus on this course will be on analyzing the unique financial issues faced by high growth entrepreneurial firms (think: high growth startups), including the different sources of financing and the type of contracts offered to these type of firms.