Timing is key: Navigating venture capital funding for science-based startups
研究发现科学型初创企业比非科学型企业更难及时获得风险投资，这种延迟与后续业绩负相关，原因在于科学家与投资者在早期融资中的目标错位。
Science-based startups, which develop technologies at the frontier of scientific knowledge, play a crucial role in innovation ecosystems. However, despite their potential for groundbreaking innovation, these startups may face frictions in securing venture capital (VC) funding. This paper investigates whether science-based startups systematically take longer to secure VC funding compared to startups that are less rooted in science. We develop a formal model that highlights a misalignment between scientists, who often prioritize technological advancement, and VCs, who seek market validation. This misalignment is particularly relevant in early funding rounds, where startups have stronger outside options. Drawing on PitchBook data for startups founded between 1990 and 2015, we find that science-based startups often struggle to attract timely investment, which may limit their ability to scale and commercialize new technologies. This is reflected in a negative correlation between longer times to VC funding and subsequent startup performance. • Science-based startups face delays in securing VC funding, which negatively correlates with startup performance. • Scientists prioritize academic recognition, potentially creating an agency problem when seeking VC investment. • Misalignment between researchers and investors is particularly relevant in early funding rounds. • An inverted U-shaped relationship exists between a startup’s scientific orientation and its likelihood of securing early VC funding.