Journal of Business Venturing
Volume 19, Issue 5, September 2004, Pages 721–741
 

Sea Jin Chang,
School of Business Administration, Korea University, Sungbukku Anamdong, Seoul 136-701, South Korea

http://dx.doi.org/10.1016/j.jbusvent.2003.03.002

Abstract
This study examines how Internet startups' venture capital financing and strategic alliances affect these startups' ability to acquire the resources necessary for growth. Using the initial public offering (IPO) event as an early-stage measure for Internet startups' performance and controlling for the IPO market environment, this study found that three factors positively influenced a startup's time to IPO: the better the reputations of participating venture capital firms and strategic alliance partners were, the more money a startup raised, and the larger was the size of a startup's network of strategic alliances.

Keywords
Venture capital financing; Internet startups; IPO