Survival of the Funded? An Econometric Analysis of New-Firm Survival and Success

The purpose of this study is to evaluate how different founder and firm characteristics affect new venture performance. This research uses survival proportional hazard functions and limited-information maximum likelihood instrumental regressions to quantify the marginal effects of capitalization choices on revenues and employment. Panel data analysis on 4,298 new firms shows that financing strategy matters, especially in combination with particular human and social capital attributes of the founders