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Learning from own and others' previous experience : the contribution of the venture capital firm to the likelihood of a portfolio company's trade sale

(2013) SMALL BUSINESS ECONOMICS. 40(3). p.575-590
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Abstract
The objective of this paper is to examine to what extent different venture capital firms contribute to the likelihood that the portfolio company in which they invested will realize a trade sale. We use arguments from learning theory to hypothesize the relationship between vicarious, experiential and congenital learning of the venture capital (VC) firm and the trade sale hazard of its portfolio companies. Based on our analysis of 206 VC-backed UK start-ups, we find that both trade sale experience of the VC and learning from syndicate partners with trade sale experience significantly increase the trade sale hazard. The routines and procedures learned from experienced syndicate partners complement experience accumulated through trial and error. Congenital trade sale experience of the investment managers on the contrary has no significant influence on the acquisition hazard.
Keywords
Exit, Learning theory, ALLIANCES, KNOWLEDGE, STARTUPS, SUCCESS, INVESTMENT PERFORMANCE, SELECTION, SYNDICATION, MANAGEMENT, ORGANIZATIONS, INDUSTRY, Entrepreneurship, Venture capital

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MLA
Clarysse, Bart, Annelies Bobelyn, and Itxaso del Palacio Aguirre. “Learning from Own and Others’ Previous Experience : the Contribution of the Venture Capital Firm to the Likelihood of a Portfolio Company's Trade Sale.” SMALL BUSINESS ECONOMICS 40.3 (2013): 575–590. Print.
APA
Clarysse, B., Bobelyn, A., & Aguirre, I. del P. (2013). Learning from own and others’ previous experience : the contribution of the venture capital firm to the likelihood of a portfolio company's trade sale. SMALL BUSINESS ECONOMICS, 40(3), 575–590.
Chicago author-date
Clarysse, Bart, Annelies Bobelyn, and Itxaso del Palacio Aguirre. 2013. “Learning from Own and Others’ Previous Experience : the Contribution of the Venture Capital Firm to the Likelihood of a Portfolio Company's Trade Sale.” Small Business Economics 40 (3): 575–590.
Chicago author-date (all authors)
Clarysse, Bart, Annelies Bobelyn, and Itxaso del Palacio Aguirre. 2013. “Learning from Own and Others’ Previous Experience : the Contribution of the Venture Capital Firm to the Likelihood of a Portfolio Company's Trade Sale.” Small Business Economics 40 (3): 575–590.
Vancouver
1.
Clarysse B, Bobelyn A, Aguirre I del P. Learning from own and others’ previous experience : the contribution of the venture capital firm to the likelihood of a portfolio company's trade sale. SMALL BUSINESS ECONOMICS. 2013;40(3):575–90.
IEEE
[1]
B. Clarysse, A. Bobelyn, and I. del P. Aguirre, “Learning from own and others’ previous experience : the contribution of the venture capital firm to the likelihood of a portfolio company’s trade sale,” SMALL BUSINESS ECONOMICS, vol. 40, no. 3, pp. 575–590, 2013.
@article{3202208,
  abstract     = {{The objective of this paper is to examine to what extent different venture capital firms contribute to the likelihood that the portfolio company in which they invested will realize a trade sale. We use arguments from learning theory to hypothesize the relationship between vicarious, experiential and congenital learning of the venture capital (VC) firm and the trade sale hazard of its portfolio companies. Based on our analysis of 206 VC-backed UK start-ups, we find that both trade sale experience of the VC and learning from syndicate partners with trade sale experience significantly increase the trade sale hazard. The routines and procedures learned from experienced syndicate partners complement experience accumulated through trial and error. Congenital trade sale experience of the investment managers on the contrary has no significant influence on the acquisition hazard.}},
  author       = {{Clarysse, Bart and Bobelyn, Annelies and Aguirre, Itxaso del Palacio}},
  issn         = {{0921-898X}},
  journal      = {{SMALL BUSINESS ECONOMICS}},
  keywords     = {{Exit,Learning theory,ALLIANCES,KNOWLEDGE,STARTUPS,SUCCESS,INVESTMENT PERFORMANCE,SELECTION,SYNDICATION,MANAGEMENT,ORGANIZATIONS,INDUSTRY,Entrepreneurship,Venture capital}},
  language     = {{eng}},
  number       = {{3}},
  pages        = {{575--590}},
  title        = {{Learning from own and others' previous experience : the contribution of the venture capital firm to the likelihood of a portfolio company's trade sale}},
  url          = {{http://dx.doi.org/10.1007/s11187-011-9381-0}},
  volume       = {{40}},
  year         = {{2013}},
}

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