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Riskirahoituksen merkitys biotekniikka-alalla: Pääomasijoittajien vertailu yritysten näkökulmasta


  • Luukkonen, Terttu
  • Maunula, Mari


The paper reports an empirical study on the overall importance and non-financial value-added provided by Venture Capital (VC) investors to their investee firms in biotechnology. The study compares the characteristics of firms that have obtained VC funding with those of firms that have not. Furthermore, it pays attention to the activities and non-financial value-added by different types of VC organization : informal investors (business angels), public sector VCs, and private sector VCs. The study data was collected through a survey and interviews at the end of 2005 with the total population of small and medium-sized biotech companies established in Finland since 1986 - 85 companies, 95 % of which participated in the study. VC investors indeed provided both financial and non-financial value-added to their investee firms. All three VC types, informal investors, public sector VCs, and private sector VCs, had somewhat different investment profiles in terms of firm type and age, and therefore, we may conclude that they are not alternatives to, but complement each other. Central findings of the study included an observation that all three VC types were fairly active in their activities vis-à-vis their investee firms. Nevertheless, they differed in terms of the overall perceived value-added as well as their activity profiles. Informal investors were found to have the highest overall value-added and kept closest contacts with their investee firms. It is, however, to be noted that informal investors invested in the youngest firms and therefore their advice and support was probably most needed. Overall, public sector VCs performed nearly as well as private sector VCs, contrary to expectations based on previous research literature on the subject.

Suggested Citation

  • Luukkonen, Terttu & Maunula, Mari, 2006. "Riskirahoituksen merkitys biotekniikka-alalla: Pääomasijoittajien vertailu yritysten näkökulmasta," Discussion Papers 1057, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1057

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    References listed on IDEAS

    1. Joseph Farrell & Garth Saloner, 1985. "Standardization, Compatibility, and Innovation," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 70-83, Spring.
    2. Joseph Farrell & Garth Saloner, 1988. "Coordination through Committees and Markets," RAND Journal of Economics, The RAND Corporation, vol. 19(2), pages 235-252, Summer.
    3. Bekkers, Rudi & Duysters, Geert & Verspagen, Bart, 2002. "Intellectual property rights, strategic technology agreements and market structure: The case of GSM," Research Policy, Elsevier, vol. 31(7), pages 1141-1161, September.
    4. Josh Lerner & Jean Tirole, 2006. "A Model of Forum Shopping," American Economic Review, American Economic Association, vol. 96(4), pages 1091-1113, September.
    5. Funk, Jeffrey L. & Methe, David T., 2001. "Market- and committee-based mechanisms in the creation and diffusion of global industry standards: the case of mobile communication," Research Policy, Elsevier, vol. 30(4), pages 589-610, April.
    6. Emmanuel Farhi & Josh Lerner & Jean Tirole, 2005. "Certifying New Technologies," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 734-744, 04/05.
    7. Marc Rysman & Tim Simcoe, 2006. "Patents and Performance of Voluntary Standard Setting Organizations," Boston University - Department of Economics - Working Papers Series WP2006-031, Boston University - Department of Economics.
    8. Lucio Fuentelsaz & Jaime GÛmez, "undated". "Multipoint Competition, Mutual Forbearance and Entry into Geographic Markets," Studies on the Spanish Economy 127, FEDEA.
    9. Joseph Farrell & Hunter K. Monroe & Garth Saloner, 1998. "The Vertical Organization of Industry: Systems Competition versus Component Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 7(2), pages 143-182, June.
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    Cited by:

    1. Luukkonen, Terttu & Maunula, Mari, 2007. "Non-financial Value-added of Venture Capital: A Comparative Study of Different Venture Capital Investors," Discussion Papers 1067, The Research Institute of the Finnish Economy.

    More about this item


    venture capital; biotechnology;

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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