University of Twente Proceedings

The relation between key events in the development phase and the financial structure of NTBFs in the software sector

Hogan, Teresa and Hutson, Elaine (2006) The relation between key events in the development phase and the financial structure of NTBFs in the software sector. In: The 14th Annual High Technology Small Firms Conference : May 11-13, 2006 + May 10, 2006 Doctoral Workshop, University of Twente, Enschede, The Netherlands., 10 May 2006 - 13 May 2006, Enschede, The Netherlands .

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Event:	The 14th Annual High Technology Small Firms Conference : May 11-13, 2006 + May 10, 2006 Doctoral Workshop, University of Twente, Enschede, The Netherlands., 10 May 2006 - 13 May 2006, Enschede, The Netherlands
Abstract:	This paper finds no systematic relation between product lead time and acquisition of first external funds in new technology-based firms (NTBFs) in the software product sector. Contrary to the stage model’s predictions, these firms are just as likely to secure finance in advance of producing their first product beta as they are to receive funds subsequently. Product lead times in this sector are short. Firms produced their first product beta in a median of 12 months and acquire their first external funds a median 3 months later. The timing of these two events, however, is not significantly different. There is a significant difference in the mean time to receipt of consulting revenues and the development of first beta, suggesting that most software product companies use consulting revenues to fund product development.
Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Stage model, capital structure, product lead time, NTBF, soft starts
Link to this item:	http://purl.utwente.nl/proceedings/154
Organisation URL:	http://www.utwente.nl/bms/nikos/
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