Research

Firm experience and market entry by venture capital firms (1962-2004)


Reference:

Dimov, D. and Martin De Holan, P., 2010. Firm experience and market entry by venture capital firms (1962-2004). Journal of Management Studies, 47 (1), pp. 130-161.

Related documents:

This repository does not currently have the full-text of this item.
You may be able to access a copy if URLs are provided below. (Contact Author)

Official URL:

http://dx.doi.org/10.1111/j.1467-6486.2009.00869.x

Abstract

In this paper, we examine a firm's decision to enter new markets as related to the depth and breadth of its experience and the relative distance of those markets. We situate our discussion and analysis in the context of the venture capital (VC) industry, and examine whether and when US VC firms enter five high-technology investment markets through first- or later-round investments. This setting allows us to observe both the firms that chose to enter a new market and those that did not, and analyse the antecedents of these decisions. We find that VC firms overall are less likely to enter distant markets; those with broader experience are more likely to make first-round entries. In addition, VC firms with deeper investment experience are more likely to make first-round entries in proximate markets and less likely to enter distant markets and make later-round entries. These results offer interesting implications for the literature on organizational learning and entrepreneurship.

Details

Item Type Articles
CreatorsDimov, D.and Martin De Holan, P.
DOI10.1111/j.1467-6486.2009.00869.x
DepartmentsSchool of Management
RefereedYes
StatusPublished
ID Code32465

Export

Actions (login required)

View Item