New venture investing trajectories: A large scale longitudinal study

Reinhard Schulte

No 13, Lüneburger Beiträge zur Gründungsforschung from Leuphana University of Lüneburg, Department of Entrepreneurship & Start-up Management

Abstract: Investment trajectories of new enterprises are a largely neglected but important issue of new firms' business behavior. This paper debuts in showing robust evidence of new venture investment time patterns by using investment time series of 4.733 new businesses. Based on a fixed effects nonlinear panel regression approach, the study models the trajectory of new venture asset acquisition in the first years after market entry. The results unveil durations and levels of investment patterns. Showing a first investment peak at market entry and a second peak years later, an initial new venture investment cycle is bimodal. Its peak-to-peak duration yields approximately nine years on average. New venture investment can be staggered into three stages, namely an initial, a plateau, and a replacement and expansion stage.

Keywords: new ventures; start-up; investment pattern; investment trajectory; fixed effects model; panel data (search for similar items in EconPapers)
JEL-codes: D92 G31 L25 M13 M21 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-ent and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:luebgf:13

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