The Role of Patents for VC Financing
Babson College, Babson College Entrepreneurship Research Conference (BCERC) 2008
Frontiers of Entrepreneurship Research, 2008
17 Pages Posted: 4 Mar 2009
Abstract
This paper investigates how patents held by new ventures affect their ability to attract venture capital (VC) financing. For a sample of VC-seeking German and British biotechnology companies we have identified all patents filed at the European Patent Office. We find that in the presence of patent applications, VC financing occurs earlier. Our results suggest that VCs pay attention to anticipated patent quality and finance ventures with high quality patents faster. Revealed quality has a mixed effect. Whereas we find patent oppositions to increase the likelihood of receiving VC, we do not find that the ultimate grant decision spurs VC financing.
Keywords: Entrepreneurship
JEL Classification: M13
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Joshua S. Gans, David H. Hsu, ...
-
By Joshua S. Gans, David H. Hsu, ...
-
By Daniel K. N. Johnson and David Popp
-
Time in Purgatory: Determinants of the Grant Lag for U.S. Patent Applications
By David Popp, Ted Juhl, ...
-
Modelling the Duration of Patent Examination at the European Patent Office
By Dietmar Harhoff and Stefan Wagner
-
Entrepreneurial Optimism in the Market for Technological Inventions
-
Are More Important Patents Approved More Slowly and Should They Be?
By Pierre Regibeau and Katharine Rockett
-
Value Appropriation as an Organizational Capability: The Case of Ip Protection Through Patents
By Markus G. Reitzig and Phanish Puranam
-
Modes of Cooperative R&D Commercialization by Start-Ups
By Vikas A. Aggarwal and David H. Hsu