Venture Capitalists and Cooperative Start-Up Commercialization Strategy

Posted: 9 Nov 2009

See all articles by David H. Hsu

David H. Hsu

University of Pennsylvania - Management Department

Multiple version iconThere are 2 versions of this paper

Date Written: 2006

Abstract

Determines the extent to which venture capital-backedstartups engage in cooperative commercialization strategies and identifiespossible consequences of those strategies. After a review of the literature onthe extra-financial effects of venture capital (VC) on startups, a number ofhypotheses are presented. Two of these hypotheses predict that VC funding is associated with boosts instartup cooperative behavior and positively associated with a startup's initialpublic offering (IPO). The next two suggest that startups affiliated with morereputable VCs forge more cooperative outcomes and are more likely to achieve anIPO. According to the last hypothesis, VC-backed startups that go public have amore reputable IPO underwriter. Data containing information on 696 firms, some of which were VC-backed andsome of which were supported by the Small Business Innovative Research (SBIR)program, are used to test these hypotheses. Analysis of the data reveals thatthe hypotheses are viable. Several potential explanations for the findings areoffered. (SAA)

Keywords: Securities Data Corporation (SDC), Startups, Software industry, Electronics industry, Cooperation, Firm image, Venture capital, Commercialization, Firm strategies, Strategic alliances, Technology licenses, Biotechnology industry, U.S. Small Business Administration (SBA), Initial public offerings (IPO)

Suggested Citation

Hsu, David H., Venture Capitalists and Cooperative Start-Up Commercialization Strategy (2006). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1502512

David H. Hsu (Contact Author)

University of Pennsylvania - Management Department ( email )

The Wharton School
Philadelphia, PA 19104-6370
United States
215-746-0125 (Phone)
215-898-0401 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
746
PlumX Metrics