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What factors determine the use of venture capital? Evidence from the Irish software sector
File(s)
File | Description | Size | Format | |
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WP-04-17.pdf | 453.92 KB |
Author(s)
Date Issued
2004
Date Available
26T14:26:16Z May 2009
Abstract
We address the venture capital financing issue from the firm’s perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which 5 human capital and 3 other variables determine the firm’s use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capital-backed. Venture capital-backed firms have significantly higher start-up costs, and their founders are less averse to loss of control than non-venture capital-backed firms. We conclude that the use of venture capital is dictated largely by the willingness of founders to relinquish control.
Type of Material
Working Paper
Publisher
University College Dublin. School of Business. Centre for Financial Markets
Series
Centre for Financial Markets working paper series
WP-04-17
Copyright (Published Version)
Centre for Financial Markets, 2004
Subject – LCSH
Venture capital
Computer software industry--Ireland
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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