Meta-Analysis of Financial Collaborative Strategies of Biotechnology and Information Technology Startups

Meta-Analysis of Financial Collaborative Strategies of Biotechnology and Information Technology Startups

Author: 
Prarthna P. Gupta
Program of study: 
D.M.
Abstract: 
Meta-analysis of Initial Public Offering (IPO) valuation studies on startups was done to address the gap in the literature with regards to financial collaborative strategies of Biotechnology and Information Technology startups. Purpose of this proposed study was to identify drivers of successful financial collaboration of Biotechnology startups using IT startups’ framework. IT startups benefit from financial collaborations resulting in an IPO offer, and gainful IPO performance, whereas Biotechnology startups engaged in financial collaboration may not translate to success. For this study, success was defined as profitable outcomes such as patent from new product invention, process innovation, technology licensing or increased stock value, an Initial Public Offering. A total of 55 IPO valuation studies were used in the analysis, out of which 29 specifically addressed Biotechnology startups failure and 26 addressed Information Technology startups success because of financial collaboration. Early on venture capital was established as a dominant source in financial collaborations within which new startups succeed or fail. The data concentrated on four domains Strategic alliances, Information asymmetry, Intellectual capital, and Human capital with respect to the role of Venture Capital (VC) funding on IPO performance. This study concluded with specific patterns of financial collaboration that were absent in Biotechnology startups but were present in Information Technology startups that succeeded. Transaction Cost Economics and Resource Dependence Theory set the theoretical framework for this study and its implications to management. Identified drivers for failure of Biotechnology startups were upstream alliances in pre-IPO phase, choice of VC, Smaller IP portfolio, post-IPO strategic alliances, post-IPO strategic team management, and Biotechnology industry’s maturity.
Dedication: 
Growing up in the household of 11, our parents indoctrinated me and my siblings to work hard, as hard work always pays off, Do the right thing and keep your faith. I dedicate this study to my parents Dr. Satya Vir Gupta, and Late Prem Gupta whose lifelong teachings and living by example made this journey possible. I am privileged and proud of being their daughter, and today I hope I made them proud too… Thank you, Mummy and Daddy.
Acknowledgements: 
While I accomplished the goal of finishing this doctorate my sisters Dr. Anjali Aggarwal and Reeta Gupta put their lives on halt to take care of our parents. My sisters are oblivious how their act of kindness, selflessness and generosity has transcended across and has given me strength to continue the last leg of the race, and not think about the hardships back home. Thanks, Didi. My son Shashank Gupta’s free neck massages when my neck and back got sore after hours of transcribing and him volunteering to cook, is really appreciated and hope it continues. And then there is Bob Pratt whose patience, understanding and constant encouragement provided me with the support that I needed. I love you. This dissertation would not have been possible without the support and guidance of Dr. Kisailus, my mentor. His constant direction and advice were the exact support I needed to finish this doctorate. When I could not believe I got the QRM approval, his email was, “Believe it, you deserve it!” That’s what I needed at that time, for someone to believe in me. Thank you Dr. Kisailus I acknowledge my committee members Dr. Terry Howard and Dr. Elmer Hall. Dr. Terry Howard’s’ quick response time made me feel that I am not a spot-filler, and she is truly vested in my success. Thank you Dr. Howard. Dr. Elmer Hall joined the committee last year but dedicated extra time via Skype and emails to understand the project, thesis direction and my intention. He made me feel that he is really interested in my research and again I am not a spot-filler. Thank you Dr. Hall. Thanks to each and every one of you for helping me succeed in this journey.