HOW DO ACADEMIC SPIN-OFFS ATTRACT VC FINANCING? EVIDENCE FROM THE MICRO AND NANOTECHNOLOGY SECTOR IN THE UK

none2noIn this paper, we provide original empirical evidence, based on a sample of 255 new ventures operating in the micro and nanotechnology (MNT) sector in the United Kingdom, on the ability of academic spin-offs to attract venture capital financing. We analyze whether venture capitalists have a bias against investing in academic spin-offs due to high levels of risk and monitoring costs. Our results suggest that this bias does not exist in the case of MNT, although spin-offs from universities with high institutional prestige have a significantly higher likelihood to receive VC financing as compared to other academic and non-academic start-ups.mixedMunari F.; Toschi L.Munari F.; Toschi L