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

Nicola Sarto (), Elisa Bocchialini, Lorenzo Gai and Federica Ielasi
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Nicola Sarto: University of Florence
Elisa Bocchialini: University of Florence
Lorenzo Gai: University of Florence
Federica Ielasi: University of Florence

Small Business Economics, 2025, vol. 65, issue 1, No 15, 427-449

Abstract: 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.

Keywords: University spin-off; Bank loans; Venture capitalist; Access to finance; Equity ownership; Banks; Signals (search for similar items in EconPapers)
JEL-codes: G21 L26 O31 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11187-024-00995-z

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