TY - JOUR
T1 - CEO human capital, top management teams, and the acquisition of venture capital in new technology ventures
T2 - An empirical analysis
AU - Patzelt, Holger
PY - 2010/9
Y1 - 2010/9
N2 - We combine signalling and human capital theory to analyze how competencies of new venture CEOs impact the amount of money technology ventures acquire in venture capital (VC) financing rounds. Using data on 117 financing events in the biotechnology industry, we show that education in management, founder-based firm-specific experience, international experience, and industry-specific experience of the CEO impact the VCs' financial commitments. Moreover, we find that the effects of management education and industry experience are moderated by the size of the venture's top management team. We discuss the implications of these findings for the research literature on technology ventures and venture capital.
AB - We combine signalling and human capital theory to analyze how competencies of new venture CEOs impact the amount of money technology ventures acquire in venture capital (VC) financing rounds. Using data on 117 financing events in the biotechnology industry, we show that education in management, founder-based firm-specific experience, international experience, and industry-specific experience of the CEO impact the VCs' financial commitments. Moreover, we find that the effects of management education and industry experience are moderated by the size of the venture's top management team. We discuss the implications of these findings for the research literature on technology ventures and venture capital.
KW - Acquisition of venture capital
KW - Biopharmaceutical industry
KW - CEOs
KW - Human capital
KW - New technology ventures
KW - Venture capital
UR - http://www.scopus.com/inward/record.url?scp=77957658939&partnerID=8YFLogxK
U2 - 10.1016/j.jengtecman.2010.06.001
DO - 10.1016/j.jengtecman.2010.06.001
M3 - Article
AN - SCOPUS:77957658939
SN - 0923-4748
VL - 27
SP - 131
EP - 147
JO - Journal of Engineering and Technology Management - JET-M
JF - Journal of Engineering and Technology Management - JET-M
IS - 3-4
ER -