The impact of venture capital on governance decisions in collaborations with start-ups

Albert Jolink, Eva Niesten

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Abstract

This article addresses solutions for contractual hazards in the formation and operation of collaborations with start-ups. We suggest that venture capitalists may serve as a mechanism to mitigate contractual hazards and act as a substitute for equity sharing in joint ventures. This article is to our knowledge the first to address the impact of venture capital (VC) on governance decisions for start-ups. We analyze 5405 bilateral collaborations from the SDC database for the period 2009-2014, and find that VC-backed firms are less likely to share equity in collaborations.
Original languageEnglish
Pages (from-to)331-344
Number of pages14
JournalSmall Business Economics
Volume47
Issue number2
Early online date9 Mar 2016
DOIs
Publication statusPublished - Aug 2016

Research Beacons, Institutes and Platforms

  • Manchester Institute of Innovation Research

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