TY - JOUR

T1 - What do we know about new venture investment time patterns?

AU - Schulte, Reinhard

PY - 2018/3/1

Y1 - 2018/3/1

N2 - This paper contributes to the literature on new firms in two ways. First, by addressing new venture investment, it focusses on a largely neglected, but important, issue of new firm business decisions. Secondly, it provides a valuable picture for how investing by new businesses is going to evolve over time. Our results suggest that investments by new firms are prone to an s-shaped time pattern rather than a random, linear, or a gradually growing trajectory or a capital market-driven behavior as is assumed usually in the literature on investment decisions. By constructing a framework for future research on new venture investment, this article suggests specific research opportunities for future contributions to this body of knowledge. Based on the developed theorem, four main strands for future research can be identified, namely, (1) the empirical validation of the theorem per se, including trajectory, duration, and level of investment; (2) the link between investment and funding of the venture; (3) the link between investment and new venture development; and (4) investment as an adjustment of aggregate capital stock.

AB - This paper contributes to the literature on new firms in two ways. First, by addressing new venture investment, it focusses on a largely neglected, but important, issue of new firm business decisions. Secondly, it provides a valuable picture for how investing by new businesses is going to evolve over time. Our results suggest that investments by new firms are prone to an s-shaped time pattern rather than a random, linear, or a gradually growing trajectory or a capital market-driven behavior as is assumed usually in the literature on investment decisions. By constructing a framework for future research on new venture investment, this article suggests specific research opportunities for future contributions to this body of knowledge. Based on the developed theorem, four main strands for future research can be identified, namely, (1) the empirical validation of the theorem per se, including trajectory, duration, and level of investment; (2) the link between investment and funding of the venture; (3) the link between investment and new venture development; and (4) investment as an adjustment of aggregate capital stock.

KW - Management studies

KW - Entrepreneurship

KW - Gründung

KW - New ventures

KW - start-up

KW - real investment dynamics

KW - investment behavior

KW - New ventures

KW - start-up

KW - real investment dynamics

KW - investment behavior

KW - investment time pattern

KW - Entrepreneurship

UR - http://www.scopus.com/inward/record.url?scp=85040807623&partnerID=8YFLogxK

U2 - 10.1142/S0219091518500042

DO - 10.1142/S0219091518500042

M3 - Journal articles

VL - 21

JO - Review of Pacific Basin Financial Markets and Policies

JF - Review of Pacific Basin Financial Markets and Policies

SN - 0219-0915

IS - 1

M1 - 1850004

ER -