Abstract

We examine the effect of different type of VC affiliations (independent VC as well as corporate VCs) on the standard setting activities of entrepreneurial firms. VCs have been shown to positively affect a start-up’s innovation activities (e.g., Samila and Sorenson, 2010). However, the link between VC backing and innovation outcome of start-ups has mostly been shown in the context of patents (e.g., Heeley, Matusik, & Jain, 2007). Yet start-ups often operate in environments where the creation of standards has been shown to strongly affect market growth rates. Thus given the desire of VCs to grow the firms they invest in as well as their experience about success factors in early venture growth, VCs should encourage start-ups to engage in standard setting activities. We therefore hypothesize that Start-ups with VC investors will be more active in standard setting organizations than start-ups without such investors.

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