The Effects of Financial Factors on the Performance of New Venture Companies in High Tech and Knowledge-Intensive Industries : An Empirical Study in Denmark

This paper addresses various financial issues in the context of knowledge-intensive entrepreneurship. The study can be seen as an empirical test of parts of a theoretical framework previously developed to identify and explain key factors affecting the survival and preliminary growth of new ventures in high-tech and knowledge-intensive sectors. The paper takes a starting point in the literature on venture capital, theory on risk and trusts and network theory. The results show that there is a high degree of variation in several dimensions across the two sectors investigated (IT and biotechnology). In closing, the paper briefly touches on the implications for policymakers, investors and business managers, and research