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Venture Capital
An International Journal of Entrepreneurial Finance
Volume 12, 2010 - Issue 4: Venture capital and high-tech start-ups
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Articles

Are technology VC investors a distinct species on the investment market?

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Pages 267-283 | Accepted 10 Dec 2009, Published online: 28 Sep 2010
 

Abstract

We address the question: do technology investors differ from traditional investors? Employing a conjoint methodology, we identified 28 technology investors from a sample of 68 European early stage investors. Comparing the two groups of investors we found that: (1) technology investors were not more likely to receive public funding than traditional investors; (2) technology investors had more investment management experience than traditional investors; and (3) technology investors had more consulting experience than traditional investors. Our research has implications for public policy, aimed at resolving the market failure for high-tech investments, high-tech entrepreneurs looking for venture capital (VC) funding, and VC funds.

Notes

1. Venture funds having a fund size between €100 million and €250 million are considered to be large funds for venture investments. Mega funds are those funds having a size of more than €250 million, small funds have less than €100 million under management (EVCA definition).

2. Communications, computer related, other electronics related, biotech, medical/health related, energy, chemicals and materials, industrial automation.

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