Investor Exits, Innovation, and Entrepreneurial Firm Growth Questions for Research: Summary of a Workshop (2009) / Chapter Skim
Currently Skimming:
2 What Are The Facts? Do They Merit Analysis?
2 What Are The Facts? Do They Merit Analysis?
Pages 7-12
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 7... ...
At the outset of the workshop three presenters were asked to describe what had happened to venture capital investment and investor exits over the previous decade. Josh Lerner of the Harvard Business School cited data from Venture Economics showing the bubble in venture capital fundraising between 1999 and 2002 (Figure 1)
|
From page 8... ...
Susan Woodward, owner of Sandhill Econometrics, presented results from a proprietary set of data on approximately 20,000 venture backed firms extending back to the late 1980s -- virtually the universe of such companies from the point at which they received their first round of venture funding, including those that failed and exited the market by shutting down altogether -- nearly one-third of the total number of firms. Woodward's quarterly data through early 2007 (Figure 3)
|
From page 9... ...
160 140 120 100 80 60 40 20 0 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 FIGURE 4 Number of Venture-Backed Acquisitions per Quarter. SOURCE: Sand Hill Econometrics.
|
From page 10... ...
Some participants saw them as a reaction to the lowered level of investment overall in technology-based startup companies after the dot-com crash and thus as part of a regular investment cycle. Other participants emphasized the persistence of the IPO slump after the 2001 market disruption and their inability in light of other market conditions to foresee any future upturn in IPOs for technology-based entrepreneurial firms.
|
From page 11... ...
Workshop chair Timothy Bresnahan, Stanford University economics professor, summarized this discussion by saying that the role of entrepreneurial growth companies and their association with expanded demand for labor in high-skill, high-wage occupations was substantial enough and the uncertainty about their future contribution was great enough to justify continuing discussion and further research, since such a secular decline would indeed be a troubling change. "Entrepreneurial firms that become established businesses have long sustained the United States' level of aggregate economic growth and well-being," he said.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.