The impact of the financial crisis on financing technology ventures

Ann Kristin Achleitner, Reiner Braun, Georg Metzger, Maximilian Schmidt

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This study examines the impact of the financial crisis on technology venture financing and investment activity. Multivariate analyses on a sample of 1,916 German technology ventures from 2007 to 2011 show that the total financing volume dropped during the financial crisis. This drop was driven by a decrease in internal and external funding. As one consequence, technology ventures, especially those with strong growth potential, reduced their investment activities in long-term tangible and intangible assets. The practical implications are worrisome, since the future prospects and growth rates of these technology ventures are likely to be affected.

Original languageEnglish
Pages (from-to)4-24
Number of pages21
JournalInternational Journal of Entrepreneurship and Small Business
Volume29
Issue number1
DOIs
StatePublished - 2016

Keywords

  • Entrepreneurial finance
  • Financial crisis
  • Start-up financing

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