Commercialization strategy and performance of technology startups

This research examines how the capability platform of a technology startup affects performance. The capability platform includes privileged assets, capital availability, and special relationships. Five hypotheses were tested using data drawn from 93 startups in North America. A startup’s performance was measured in two ways: number of new products introduced in the market and the amount of venture capital raised by the startup during the first three years of operations. The results suggest that: (i) the number of partners established by a startup is positively associated with the number of new products introduced, (ii) the level of market related experience of the top management team is positively associated with the amount of venture capital raised by the startup, and (iii) the shorter the time to first round of venture capital financing increases the number of new products introduced and the amount of venture capital raised in the first three years.