Title: Venture capital for German high-tech new ventures: disentangling the role of human capital for funding success

Authors: Robert Richstein; Elmar Lins

Addresses: Manchot Graduate School, Heinrich Heine University Dűsseldorf, Universitätsstraβe 1, D-40225 Düsseldorf, Germany ' Riesner Endowed Professorship in Entrepreneurship/Entrepreneurial Finance, Heinrich Heine University Dűsseldorf, Universitätsstraβe 1, D-40225 Düsseldorf, Germany

Abstract: This study examines the determinants of venture capital funding success in a German research context. Prior research has largely focused on the benefits of human capital, documenting the many advantages that arise out of the presence of certain capabilities and knowledge. However, countries differ with regard not only to available human capital but also to environments and the active involvement of investors. As a result, certain human capital resources might be more relevant or even compensated for. Therefore, this study investigates German new technology-based firms (NTBFs) and the role of human capital when trying to access external equity financing. We find that innovative human capital and the amount of general human capital positively affect the access to venture capital funding in Germany. Surprisingly, we find a negative correlation between the probability of accessing venture capital and the founders' number of years in the industry.

Keywords: venture capital; venture capital funding; high-tech new ventures; German new ventures; human capital; Germany.

DOI: 10.1504/IJESB.2018.088682

International Journal of Entrepreneurship and Small Business, 2018 Vol.33 No.1, pp.88 - 111

Received: 18 Jul 2016
Accepted: 12 Feb 2017
Published online: 14 Dec 2017 *

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