Venture capital financing and the growth of startup firms

Dávila, Antonio; Foster, George; Gupta, Mahendra

doi:10.1016/s0883-9026(02)00127-1

Cited by 590 publications

(354 citation statements)

References 23 publications

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“…This does not, of course, deny the crucial role that VC plays in helping to stimulate rapid firm growth within certain types of innovative companies with upside potential (Davila et al 2003;Audretsch and Lehmann 2004). High-tech R&D-based start-ups often require equity funding to overcome high levels of informational opacity and a lack of revenue (Berger and Udell 1998).…”

Section: Myth #4 Hgfs Are Mostly Vc-backedmentioning

confidence: 99%

Myth-busting and entrepreneurship policy: the case of high growth firms

Brown

Mawson

Mason

2017

Entrepreneurship & Regional Development

162

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Promoting high growth firms (HGFs) has become a strong fixation within enterprise policy. This is a debate article seeking to examine and challenge the mythology perpetuated by policy makers and embedded within high growth entrepreneurship policy frameworks. Within the article we argue that a number of distinctive 'myths' have become deeply embedded within these policy frameworks. Such myths have been built on misconceived preconceptions of HGFs, which has resulted in policy-makers taking a myopic view of these firms. A key aim of the paper is to highlight how false perceptions of HGFs translate into inappropriate policy interventions. The paper challenges some of the most commonly held myths about these firms (that they are predominantly young, small, high-tech, VC-backed, university spin-outs, who grow in an orderly organic fashion, operating similarly irrespective of location) and identifies a clear mismatch between how policy makers perceive HGFs and what they actually look like in reality. Suggestions for the design of future policy approaches are forwarded.

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Section: Myth #4 Hgfs Are Mostly Vc-backedmentioning

confidence: 99%

Myth-busting and entrepreneurship policy: the case of high growth firms

Brown

Mawson

Mason

2017

Entrepreneurship & Regional Development

162

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“…When an entrepreneur undertakes new innovative ventures, related activities will generally increase the enterprise's overall risk, which in turn will increase the demand for risk capital (Baule, 2012). Generally speaking, risk capital consists primarily of venture capital, private equity and innovative combinations of these two (Belussi and Sedita, 2015;Davila et al, 2003;Wright and Robbie, 1998). In this context, venture capital refers to capital or funds invested in start-ups (Cochrane, 2005; Kanniainen and Keuschnigg, 2003; Kanniainen and Keuschnigg, 2004;Reddy and Subbaiah, 2011) while private equity refers to capital or funds invested in established enterprises (Achleitner et al, 2010;Cressy et al, 2007;Daniel, 2012).…”

Section: The Body Of Literaturementioning

confidence: 99%

Financing entrepreneurship by risk capital - evidence revisited

Fellnhofer

2017

JIBED

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This paper summarises the large body of literature dedicated to risk capital within entrepreneurship. This work attempts to advance this field of research and identifies crucial research prospects by examining and evaluating the current body of literature by means of a literature review using a qualitative and quantitative approach. Multi-level comparisons of previous discussions and studies on the perspectives of different market participants reveal gaps that warrant further critical debate. Having synthesised the existing body of literature, the paper concludes by proposing three essential directions for the future while calling for stronger (theoretical) ties between the finance and entrepreneurship literature.

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“…No obstante, la investigación es aún escasa y con un enfoque preferentemente descriptivo (Cooper et al, 1994;Dávila et al, 2003).…”

Section: Emprendimiento Y Acceso a La Financiaciónunclassified