Relocation to get venture capital : a resource dependence perspective

This is the author accepted manuscript. The final version is available from SAGE via the DOI in this record.Using a resource dependence perspective, we theorize and show that non-venture-capital-backed ventures founded in U.S. states with a lower availability of venture capital (VC) are more likely to relocate to California (CA) or Massachusetts (MA)—the two VC richest states—compared to ventures founded in states with a greater availability of VC. Moreover, controlling for self-selection, ventures that relocate to CA or MA subsequently have a greater probability of attracting initial VC compared to ventures that stay in their home state. We discuss the implications for theory, future research, and practice

The role of gender in entrepreneur-investor relationships : A signaling theory approach

Author's accepted version (postprint).Available from 11/01/2018.This is the peer reviewed version of the following article: Alsos, G. A. & Ljunggren, E. (2016). The role of gender in entrepreneur-investor relationships: A signaling theory approach. Entrepreneurship: Theory & Practice, which has been published in final form at http://dx.doi.org/10.1111/etap.12226. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving (http://olabout.wiley.com/WileyCDA/Section/id-820227.html).This study adopts a gender perspective to analyze funding decisions made by an investment fund that invests equity stakes in new ventures. Prior research has indicated that there is gender skewness in risk capital investments resulting from a combination of demand- and supply-side issues. We apply signaling theory to examine the interface between demand and supply to understand gender biases related to risk capital investments. In-depth analyses of decision documents from four investment cases show that gender plays a role in the signals that are communicated in the prefunding entrepreneur–investor relationship

Cannot make do without you: Outsourcing by knowledge-intensive new firms in supplier networks

How do new firms operating in dynamic environments organize their operations? Building on the transaction cost theory and the resource based view and using case study data from ten biotechnology start-ups and twenty of their suppliers, this research reveals that new firms outsourcing to highly-embedded suppliers are likely to secure access to a wider supplier network, attain best-in-class operational knowledge, and avoid supplier opportunism while facing low levels of relationship-specific investments. New firms outsourcing to suppliers at the network periphery are more likely to realize cost efficiencies, expose themselves to opportunism, uncertainty, and higher levels of relationship-specific investments but low levels of operational knowledge. We propose that new firms build five outsourcing competencies to realize benefits

Do venture capitalists add value? A comparative study between Singapore and US

This study provides a comprehensive overview of venture capital (VC) funds in Singapore. By examining the effects on their public listed investees, a profile of VC-backed listed companies in Singapore is analysed. It is found that value added of VCs to their investees can be attributed in several aspects: their equity stake taking, board seat, and especially in their timing of initial public offerings (IPOs) to market heights. The findings in the paper have several implications. Although the role of VC firms in Singapore is important in creating public companies, their participation with respect to their investees still lags behind their counterparts in the US. Their value added in management functions needs to be emphasized so that they can contribute more to the investees and thus, enhance their own returns. For companies seeking VC support or already preparing IPO with VC support, they should know what VCs can and cannot provide. For instance, they can expect the VCs to help in the timing of IPOs, but in management support, the help provided by the VCs in Singapore is limited compared to their US counterparts.