Faculty of Economics and Business Administration Publications Database

Specific managerial human capital, firm age, and venture capital financing of biopharmaceutical ventures: A contingency approach

Behrens, Judith
Patzelt, Holger
Bürger, Robin
Volume: 23
Number: 2
Pages: 112 - 121
ISSN-Print: 1047-8310
Link External Source: Online Version
Year: 2012
Keywords: Venture capital; Human capital; Top management team; Biotechnology
Abstract: In this article we investigate how specific human capital in biopharmaceutical ventures'' management teams impacts the financial commitment of venture capital investors. Further, we explore how this impact changes with the venture''s age. We draw on data from 138 VC financing rounds in the US and Europe to show that biopharmaceutical ventures with greater portions of specific managerial human capital in the fields of management, law, medicine, and biosciences acquire more money in venture capital financing rounds, but this effect is contingent on the age of the venture. We discuss the implications of these findings for the literature on VC financing of high technology ventures.