Entrepreneurial Investment Cycle – A Large-scale Longitudinal Study

Research output: Contributions to collected editions/worksChapterpeer-review


  • Reinhard Schulte
Investment trajectories of new businesses are an often disregarded but vital aspect of new venture development. This study 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 chapter 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.
Original languageEnglish
Title of host publicationDe Gruyter Handbook of SME Entrepreneurship
EditorsMarina Dabić, Sascha Kraus
Number of pages15
Place of PublicationBerlin
PublisherWalter de Gruyter GmbH
Publication date06.11.2023
ISBN (Print)978-3-11-074752-2, 3-11-074752-9
ISBN (Electronic)978-3-11-074772-0, 978-3-11-074765-2
Publication statusPublished - 06.11.2023

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