ASIAN AMERICAN-FOUNDED VENTURES IN SILICON VALLEY: CHALLENGES, STRATEGIC PARTNERSHIP, AND PERFORMANCE

David Y. Choi (), Dong Chen () and Woo Jin Lee ()
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David Y. Choi: College of Business Administration, Loyola Marymount University, One LMU Drive, Los Angeles, CA 90045-2659, USA
Dong Chen: College of Business Administration, Loyola Marymount University, One LMU Drive, Los Angeles, CA 90045-2659, USA
Woo Jin Lee: Chung Ang University, 221 Heukseok-Dong, Dongjak-Bu, Seoul, Korea

Journal of Enterprising Culture (JEC), 2010, vol. 18, issue 04, 355-375

Abstract: This paper examines the performance of Silicon Valley ventures with Asian-American founding teams. We review some challenges faced by these ventures, compare their performance with that of other ventures, and analyze the impact of strategic partnerships on their performance. Our results indicate that firms founded by Asian American entrepreneurs tend to require more time to reach initial public offering (IPO) status than do other ventures in Silicon Valley. Our results further show that, despite needing this extra time, Asian American-founded ventures significantly outperformed their counterparts in 12-month post-IPO share price gain. This superior short-term post-IPO performance suggests that Asian American firms, particularly those that lacked relationships with U.S.-based strategic investors, might have been undervalued prior to and at IPO.

Keywords: Entrepreneurs; Asian American; Silicon Valley; Valuation; IPO; Performance (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1142/S0218495810000616

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