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The influence of venture capital and university ownership on spin-off’s bank loan access: a synergistic effect

Author

Listed:
  • Nicola Sarto

    (University of Florence)

  • Elisa Bocchialini

    (University of Florence)

  • Lorenzo Gai

    (University of Florence)

  • Federica Ielasi

    (University of Florence)

Abstract

University spin-offs (USOs) often face difficulties obtaining bank loans due to the perceived riskiness of their technologies. This study investigates the role of venture capitalists (VCs) and university ownership in facilitating bank debt for USOs, focusing on their impact on access to long-term financing. Using a fixed-effect panel data model on 1594 Italian USOs between 2012 and 2022, the findings indicate that VC support enhances access to bank loans, particularly long-term ones. Moreover, the presence of university equity ownership further strengthens the effect of VC support by serving as an additional positive signal to banks. The results highlight the synergistic role of VCs and universities in increasing the creditworthiness of spin-offs. This study contributes to entrepreneurial finance and academic entrepreneurship by showing that the combination of VC and university involvement significantly improves access to bank debt, thereby promoting the sustainable growth of university spin-offs.

Suggested Citation

  • Nicola Sarto & Elisa Bocchialini & Lorenzo Gai & Federica Ielasi, 2025. "The influence of venture capital and university ownership on spin-off’s bank loan access: a synergistic effect," Small Business Economics, Springer, vol. 65(1), pages 427-449, June.
    • Handle: RePEc:kap:sbusec:v:65:y:2025:i:1:d:10.1007_s11187-024-00995-z
    DOI: 10.1007/s11187-024-00995-z
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    Keywords

    University spin-off; Bank loans; Venture capitalist; Access to finance; Equity ownership; Banks; Signals;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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