Impact of venture capital on the growth of the university spin-offs

Impact of venture capital on the growth of the university spin-offs

Abstract:

The creation of companies in the universities, called university spin-offs, has increased significantly in the last decade. These companies face problems as the lack of funding and business skills of its founders. Venture capital can be an alternative to this type of companies to solvent these problems. In order to prove if the fact of being participated by venture capital conditions the growth of university spin-offs we have analyzed the impact of the presence in the shareholders of a venture capital company in the growth of these firms. Our sample is formed by 212 Spanish´ academic spin-offs during the period 2001-2010, 74 of which have been owned by partners of venture capital. The results obtained shows that the presence of partners of venture capital has a positive effect on the growth of net sales in the university spin-offs In Spain. On the basis of these results we have been established a series of proposal to be applied by public administrations and academic authorities.

Keywords: university spin-offs, growth, shareholder, venture capital, coach effect, signal effect, scout effect.