Title: The influence of government subsidies and risk capital on survival of university spin-offs: findings from 16 early stage case studies

Authors: Sven H. De Cleyn, Johan Braet

Addresses: Faculty of Applied Economics, Department of Environment and Technology Management, University of Antwerp, Prinsstraat 13, B-2000 Antwerp, Belgium. ' Faculty of Applied Economics, Department of Environment and Technology Management, University of Antwerp, Prinsstraat 13, B-2000 Antwerp, Belgium

Abstract: Scholar research seems to confirm that the type of funding of a university spin-off venture influences these survival chances. This study aims to investigate whether the basic type of funding used for young university spin-offs influences the survival chances. The reasoning is that screening by a previously independent party such as government agencies, business angels or venture capitalists provides additional evidence on the potential of a project or venture. The preliminary results, based on 16 case studies with Belgian university spin-offs, seem to confirm that successful application for government subsidies for the development of a technology, product or business increases the likelihood of venture survival. On the other hand, access to risk capital seems not to positively influence survival chances.

Keywords: university spin-offs; academic entrepreneurship; government support; government subsidies; business angels; venture capital; funding; finance; company survival; case studies; innovation management; risk capital.

DOI: 10.1504/WREMSD.2009.031626

World Review of Entrepreneurship, Management and Sustainable Development, 2009 Vol.5 No.4, pp.376 - 394

Available online: 15 Feb 2010 *

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