Title: Bio-entrepreneurs and their investors: a mutually beneficial relationship?

Authors: Isabell M. Welpe, Holger Kollmer

Addresses: Ludwig-Maximilians-Universitat, Klenzestrasse 65, 80469 Munchen, Germany. ' Exist-HighTEPP, University of Regensburg, 93040 Regensburg, Germany

Abstract: We empirically study the influence of Venture Capital Companies (VCC) on the technology regarding biotechnology of startups and the commercialisation strategy by using a combination of dyadic case studies and a questionnaire survey. The main findings regarding the effects of and reasons for Venture Capital (VC) firms| influence on startups| commercialisation and technology strategy are the following. First, startups report that the VCCs| influence on their technology and commercialisation strategy can be either strong or weak, with very few startups reporting a medium level of influence. Second, VCCs| short-term objectives play an important role in VCCs| influence on their portfolio companies. Third, entrepreneurs| evaluation of the outcome of VCCs| influence on the company is dependent on the VCCs| reasons for exerting influence. Exerting influence because of ||the VCCs| greater plans for the startup|| is rated as the most positive reason. Fourth, corporate VCCs| influence is rated more positive than other investor types| influence.

Keywords: bioentrepreneurship; entrepreneurship; biotechnology; venture capital financing; commercialisation strategies; technology development; investment; startups; technology strategy.

DOI: 10.1504/IJBT.2006.009297

International Journal of Biotechnology, 2006 Vol.8 No.3/4, pp.304 - 318

Published online: 15 Mar 2006 *

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