The diminishing signaling value of patents between early rounds of venture capital financing
نویسندگان
چکیده
منابع مشابه
The Role of Patents for Venture Capital Financing
This paper investigates how patent applications and grants held by new ventures improve their ability to attract venture capital (VC) financing. We argue that investors are faced with considerable uncertainty and therefore rely on patents as signals when trying to assess the prospects of potential portfolio companies. For a sample of VC-seeking German and British biotechnology companies we have...
متن کاملThe Diminishing Signaling Value of Patents between Early Rounds of Venture Capital Financing a Manuscript for consideration for inclusion in the Searle Center Sixth Annual Conference on Innovation and Entrepreneurship
A long stream of research has documented the positive effects that patents bring about to emerging firms in high technology industries. The general consensus is that patents contribute to firm growth because they confer monopolistic market rights, offer protection from competitors, increase the negotiating position of patent holders and other benefits. What has received relatively less attentio...
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Observable resources, particularly patents, alliances, and team experience, are known to affect a startup’s ability to attract venture capital financing. In this context they potentially fulfill a twofold function: as productive assets and, likely, as signals of characteristics of a venture that are not observable at the time of assessment. In particular, patents, alliances, and team experience...
متن کاملTo Be Financed or Not - The Role of Patents for Venture Capital Financing
This paper investigates how patents held by new ventures affect their ability to attract venture capital (VC) financing. For a sample of VCseeking German and British biotechnology companies we have identified all patents filed at the European Patent Office. We find that in the presence of patent applications, VC financing occurs earlier. Our results suggest that VCs pay attention to patent qual...
متن کاملPatents, Venture Capital, and Software Start-ups
This paper analyzes the relation between the patenting behavior of startup firms and the progress of those firms through the venture capital cycle. Linking data relating to venture capital financing of software startup firms with data concerning the patents obtained by those firms, we find significant and robust positive correlations between patenting and several variables measuring the firm’s ...
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ژورنال
عنوان ژورنال: Research Policy
سال: 2014
ISSN: 0048-7333
DOI: 10.1016/j.respol.2014.01.006