To Be Financed or Not ...-The Role of Patents for Venture Capital Financing

@inproceedings{Haeussler2009ToBF,
  title={To Be Financed or Not ...-The Role of Patents for Venture Capital Financing},
  author={Carolin Haeussler},
  year={2009}
}
This paper investigates how patent applications and grants held by new ventures improve their ability to attract venture capital (VC) financing. We argue that investors are faced with considerable uncertainty and therefore rely on patents as signals when trying to assess the prospects of potential portfolio companies. For a sample of VC-seeking German and British biotechnology companies we have identified all patents filed at the European Patent Office (EPO). Applying hazard rate analysis, we… CONTINUE READING
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