probability of survival until the IPO stage is higher for venture-backed companies. (2) According to several different measures …, conditional on making an IPO, the post-listing performance of venture-backed companies is not statistically different from that of …

venture capital (VC) financing. We argue that investors are faced with considerable uncertainty and therefore rely on patents … British biotechnology companies we have identified all patents filed at the European Patent Office (EPO). Applying hazard rate … attention to patent quality, financing those ventures faster which later turn out to have high-quality patents. Patent …

acquire valuable ideas, develop them beyond the level incumbents would have chosen, and use patents to signal their companies …

, and progressive taxation, as well as investment and output subsidies to the entrepreneurial sector. …

‘informed capital’. Due to incentive and information problems, start-ups face larger costs of going public than mature firms …, the quicker monitors’ informed capital is redirected towards new start-ups. Hence, when informed capital is in limited …

'): an arrival of new technology increases demands for venture capital by driving new firm startups. We analyze this …