The interaction between product market and financing strategy: The role of venture capital

Published

Journal Article

Venture capital financing is widely believed to be influential for new innovative companies. We provide empirical evidence that venture capital financing is related to product market strategies and outcomes of start-ups. Using a unique hand-collected database of Silicon Valley high-tech start-ups we find that innovator firms are more likely to obtain venture capital than imitator firms. Venture capital is also associated with a significant reduction in the time to bring a product to market, especially for innovators. Our results suggest significant interrelations between investor types and product market dimensions, and a role of venture capital for innovative companies.

Full Text

Duke Authors

Cited Authors

  • Hellmann, T; Puri, M

Published Date

  • January 1, 2000

Published In

Volume / Issue

  • 13 / 4

Start / End Page

  • 959 - 984

International Standard Serial Number (ISSN)

  • 0893-9454

Digital Object Identifier (DOI)

  • 10.1093/rfs/13.4.959

Citation Source

  • Scopus