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 language | English |
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Pages (from-to) | 331-344 |
Number of pages | 14 |
Journal | Small Business Economics |
Volume | 47 |
Issue number | 2 |
Early online date | 9 Mar 2016 |
DOIs | |
Publication status | Published - Aug 2016 |
Research Beacons, Institutes and Platforms
- Manchester Institute of Innovation Research