Are entrepreneurial venture's innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs

Elisa Alvarez‐Garrido; Gary Dushnitsky

doi:10.1002/smj.2359

journal article Jan 19, 2015

Are entrepreneurial venture's innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs

Elisa Alvarez‐Garrido Gary Dushnitsky

Strategic Management Journal Vol. 37 No. 5 pp. 819-834 · Wiley

View at Publisher Save 10.1002/smj.2359

Abstract

Entrepreneurial ventures are a key source of innovation. Nowadays, ventures are backed by a wide array of investors whose complementary asset profiles differ significantly. We therefore assert that entrepreneurial ventures can no longer be studied as a homogeneous group. Rather, we harness the inherent dichotomy in the profiles of independent
VCs
and corporate investors to study ventures' innovation outcomes. Our sample consists of 545
U.S.
biotechnology ventures founded between 1990 and 2003 and backed by independent venture capitalists (
VCs
) or corporate
VCs
(
CVC
). We find
CVCs
' investees exhibit higher rates of innovation output, compared to independent
VC
‐backed peers. Moreover, the performance of
CVC
‐backed ventures is sensitive to their ability to leverage corporate assets, underscoring the role of
CVC
accessibility and
FDA
approval requirements as the mechanisms associated with
CVC
contribution

. Copyright © 2014 John Wiley & Sons, Ltd.

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Metrics

174

Citations

76

References

Details

Published: Jan 19, 2015
Vol/Issue: 37(5)
Pages: 819-834
License: View

Authors

E

Elisa Alvarez‐Garrido

Department of Managerial Sciences, J. Mack Robinson College of Business, Georgia State University Atlanta Georgia U.S.A

G

Gary Dushnitsky

Strategy & Entrepreneurship Area, London Business School London U.K

Funding

Mack Institute for Innovation Management, Wharton School

Cite This Article

Elisa Alvarez‐Garrido, Gary Dushnitsky (2015). Are entrepreneurial venture's innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs. Strategic Management Journal, 37(5), 819-834. https://doi.org/10.1002/smj.2359

Are entrepreneurial venture's innovation rates sensitive to investor complementary assets? Comparing biotech ventures backed by corporate and independent VCs

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