TY  - UNPD
A1  - Cumming, Douglas J.
A1  - Werth, Jochen Christian
A1  - Zhang, Yelin
T1  - Governance in entrepreneurial ecosystems: venture capitalists vs. technology parks
T2  - SAFE working paper series ; No. 135
N2  - We argue two alternative routes that lead entrepreneurial start-ups to acquisition outcomes instead of liquidation. On one hand, acquisitions can come about through the control route with external financers such as venture capitalists (VCs). VCs take control through their board seats along with other contractual rights that can bring about changes in a start-up necessary to successfully attract a strategic acquirer. Consistent with this view, we show that VCs often replace the founding entrepreneur as CEO long before an acquisition exit. On the other hand, acquisitions can come about through advice and support provided to the start-up, such as that provided by an incubator or technology park. Based on a sample of 251 Crunchbase companies in the U.S. over the years 2007 to 2014, we present evidence that is strongly consistent with these propositions. Further, we show that the data indicate a tension between VC-backing of start-ups resident in technology parks insofar as such start-ups are slower to become, and less likely to be, acquired.
T3  - SAFE working paper - 135 
KW  - Entrepreneurship
KW  - Entrepreneurial Finance
KW  - Governance
KW  - Technology Park
KW  - Incubator
KW  - Board of Directors
KW  - Venture Capital
KW  - Angel
Y1  - 2016
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/40067
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-400673
UR  - http://ssrn.com/abstract=2777423
PB  - SAFE
CY  - Frankfurt am Main
ER  -