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dc.contributor.authorVanacker, Tom
dc.contributor.authorManigart, Sophie
dc.contributor.authorMeuleman, Miguel
dc.date.accessioned2017-12-02T14:32:13Z
dc.date.available2017-12-02T14:32:13Z
dc.date.issued2008
dc.identifier.urihttp://hdl.handle.net/20.500.12127/2908
dc.description.abstractUsing multiple longitudinal case studies of young biotechnology firms, we study differences in the financing process between high and low performing firms. Findings suggest that initial differences in the specialization of the investors with whom entrepreneurs affiliate early on, affect the ease with which firms attract (specialized) follow-on financing and firm performance. We demonstrate the role of the social context in shaping initial financing outcomes, as entrepreneurs limit their search for financing to one or a few investors with whom they have pre-existing ties. Additionally, our research provides a dynamic view of the financing process. We identify isolating mechanisms, including entrepreneurial learning and homophily and network considerations in investor syndication, which limit entrepreneurs when trying to adopt successful financing strategies implemented by competitors later on. A core contribution is that we theorize on evolutionary processes in the financing process. This new perspective advances our knowledge on dynamics in the financing process and opens multiple avenues for future research.
dc.description.sponsorshipThis paper benefited from the comments of Gavin Cassar, Daniel Forbes, Hans Landström, Harry Sapienza, Shaker Zahra, Academy of Management Meeting reviewers and participants from the 2008 Belgian Financial Research Forum. We thank Bart Clarysse and his research team for generously granting access to their data on Flemish research based startups. The first author gratefully acknowledges the financial support of the Intercollegiate Center for Management Science (I.C.M.).
dc.language.isoen
dc.subjectCorporate Finance
dc.subjectAccounting & Finance
dc.subjectEntrepreneurship
dc.subjectEntrepreneurship
dc.subjectNew Venture Finance
dc.subjectFinancing Process
dc.subjectVenture Capital
dc.subjectPerformance
dc.titleTowards an evolutionary model of the entrepreneurial financing process: insights from biotechnology startups
refterms.dateFOA2019-10-14T12:44:42Z
dc.source.issue9
dc.source.numberofpages40
vlerick.knowledgedomainAccounting & Finance
vlerick.knowledgedomainEntrepreneurship
vlerick.supervisor
vlerick.typecommWorking paper
vlerick.vlerickdepartmentA&F
vlerick.vlerickdepartmentEGS
dc.identifier.vperid35884
dc.identifier.vperid58266
dc.identifier.vperid86497
dc.identifier.vpubid3308


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