Valuation of High-Risk High-Technology Ventures

2006 ◽  
Author(s):  
Avi Messica
Keyword(s):  
High Risk ◽  
High Technology ◽  
Technology Ventures

Firm-Specific Resources and Wealth Creation in High-Technology Ventures: Evidence from Newly Public Biotechnology Firms

1998 ◽  
Vol 22 (3) ◽  
pp. 55-73 ◽  
Author(s):  
David L. Deeds ◽  
Dona Decarolis ◽  
Joseph E. Coombs
Keyword(s):  
Firm Behavior ◽  
New Ventures ◽  
Value Added ◽  
Market Value ◽  
High Technology ◽  
Wealth Creation ◽  
Biotechnology Firms ◽  
Market Value Added ◽  
The Relationship ◽  
Technology Ventures

We explore the relationship between wealth creation in high-technology ventures and firm-specific resources. We argue that Market Value Added is a particularly appropriate measure of entrepreneurial performance because of its focus on wealth creation, which is the essence of entrepreneurship. We present a model of wealth creation in new ventures based on the resource-based theory of firm behavior. The model suggests that firm-specific research and scientific capabilities are associated with wealth creation. The model is tested on a sample of 89 biotechnology firms. The results provide strong evidence for the hypothesized relationship between firm-specific capabilities and wealth creation in new ventures.

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