IDEAS home Printed from https://ideas.repec.org/a/taf/veecee/v7y2005i3p259-283.html
   My bibliography  Save this article

What factors determine the use of venture capital? evidence from the Irish software sector

Author

Listed:
  • Teresa Hogan
  • Elaine Hutson

Abstract

We address the venture capital financing issue from the firm's perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which five human capital and three other variables determine the firm's use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capital-backed. Venture capital-backed firms have significantly higher start-up costs, and their founders are less averse to loss of control than non-venture capital-backed firms. We conclude that the use of venture capital is dictated largely by the willingness of founders to relinquish control.

Suggested Citation

  • Teresa Hogan & Elaine Hutson, 2005. "What factors determine the use of venture capital? evidence from the Irish software sector," Venture Capital, Taylor & Francis Journals, vol. 7(3), pages 259-283, July.
    • Handle: RePEc:taf:veecee:v:7:y:2005:i:3:p:259-283
    DOI: 10.1080/13691060500268249
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13691060500268249
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13691060500268249?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Elisa Salvador & Secondo Rolfo, 2011. "Are incubators and science parks effective for research spin-offs? Evidence from Italy," Science and Public Policy, Oxford University Press, vol. 38(3), pages 170-184, April.
    2. Power Jane & Power Bernadette & Ryan Geraldine, 2022. "Determinants of equity financing: a demand-side analysis of Irish indigenous technology-based firms," The Irish Journal of Management, Sciendo, vol. 41(1), pages 52-68, July.
    3. Sylvain Bureau & Elisa Salvador & Jacqueline Fendt, 2012. "Small firms and the growth stage: can entrepreneurship education programmes be supportive?," Post-Print hal-02530098, HAL.
    4. Eduardo Couto & José Bilau, 2011. "Initial Capital Structure Of Portuguese Innovative Firms:The Role Of Nascent Entrepreneurs' Human Capital," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 29-42.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:veecee:v:7:y:2005:i:3:p:259-283. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TVEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.