TY  - JOUR
AU  - Conti,Annamaria
AU  - Thursby,Marie C.
AU  - Rothaermel,Frank
TI  - Show Me the Right Stuff: Signals for High Tech Startups
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 17050
PY  - 2011
Y2  - May 2011
UR  - http://www.nber.org/papers/w17050
L1  - http://www.nber.org/papers/w17050.pdf
N1  - Author contact info:
Annamaria Conti
Annamaria Conti
800 W. Peachtree St N.W.
Atlanta, GA 30308
E-Mail: annamaria.conti@mgt.gatech.edu

Marie C. Thursby
College of Management
Georgia Institute of Technology
800 West Peachtree Street, NW
Atlanta, GA 30308-1149
Tel: 404/894-6249
Fax: 404/385-4894
E-Mail: marie.thursby@mgt.gatech.edu

Frank Rothaermel
Professor Frank Rothaermel
800 W. Peachtree St N.W.
Atlanta, GA 30308
E-Mail: frank.rothaermel@mgt.gatech.edu
AB  - We present a theoretical model of startup signaling with multiple signals and potential dierences in external investor preferences. For a novel sample of technology incubator startups, we empirically examine the use of patents and founder, friends, and family (FFF) money as such signals, nding that they are jointly endogenous to venture capital and business angel investment in the startups. For this sample, venture capitalists appear to value patents more highly than FFF money, while the reverse is true for business angels. Moreover, the impact of patents on venture capitalists is larger than the impact of FFF money on business angels.
ER  -