Sanford B. Ehrlich

After the cash arrives: A comparative study of venture capital and private investor involvement in entrepreneurial firms

Abstract Equity investments in entrepreneurial firms continue to grow in number and dollar amount from both venture capital and private investment sources. Increasingly, these two sources of capital play an important role in the development of new and existing entrepreneurial ventures. Due to the sometimes hurried attempt to turn their dream into reality, entrepreneurs may fail to consider similarities and differences in the value-added benefits supplied by venture capital firms (VCs) and private investors (PIs). Accordingly, the purpose of this study was to determine how initial relationships are established and maintained between entrepreneurs and their primary investors. Specifically, we asked entrepreneurs to assess characteristics of the relationship with their primary investor. We then contrasted the results between entrepreneurial firms that had received venture capital funding versus private investor funding. Differences were examined along the following lines: 1. • Levels of investor involvement in entrepreneurial firms 2. • Reporting and operational controls placed on the firm 3. • Types of expertise sought by the entrepreneur

The charismatic appeal of a transformational leader: An empirical case study of a small, high-technology contractor.

Abstract The association among transformational and transactional leadership behaviors, generalized beliefs about leadership, and self-reports of extra effort were examined in a corporation that experienced a turnaround in financial performance under a new general manager. Generalized beliefs about leadership and charisma were each significantly related to many transactional behaviors measured in the Leader Behavior Description Questionnaire—Form XII. Nevertheless, charisma was significantly related to self-reports of extra effort, after controlling for its association to these other transactional measures of leadership. These results imply that transactional behaviors may contribute to the emergence of charisma in smaller organizations where employees have more direct interactions with their top manager. Moreover, our evidence further reinforces that an attribution of charisma, as opposed to transactional behaviors, may be needed to sustain expenditures of extra effort.

The Impact of Presentation Form, Entrepreneurial Passion, and Perceived Preparedness on Obtaining Grant Funding

This study investigates important questions for any emerging high-technology firm attempting to obtain funding: Does the design of the presentation and the perceived passion and preparedness of the presenter influence expert reviewers’ assessment of the merits of the firm’s proposal? The authors analyzed 22 videotaped presentations to reviewer panels at a U.S. Department of Defense technology transfer consortium and compared the panels’ assessments of the presenting firms’ proposals both before and after the formal presentations. The data showed that, on average, higher levels of perceived entrepreneurial passion and presenter preparedness and presentation designs that effectively captured the audiences’ attention resulted in higher ratings by decision makers on the firm’s technology merit, management ability, and commercial potential.

Predicting the Commercialization Progress of Early-Stage Technologies: An Ex-Ante Analysis

Predicting commercialization progress (CP) for early-stage technologies is critical for funding agencies and private equity investors. This study employed an ex-ante analysis of expert assessments on the future potential of early-stage technologies by a U.S. Department of Defense funded Technology transfer agency. We examined expert assessments of 271 technologies that were considered for funding. We then evaluated subsequent CP of these technologies. Our results indicated that evaluations of technical merit were significantly and positively related to obtaining follow-on grants, license agreements, and partnership alliances, while evaluation of commercial potential was related to obtaining subsequent private equity investment. Evaluation of management team expertise was positively related to future revenue generation, but negatively related to future equity investment, partnership alliances, and license agreements. Meeting established milestones was also related to future commercial success.

Spin-In Technology Transfer for Small R&D Bio-Technology Firms: The Case of Bio-Defense

This study investigates the types of factors which can lead to government acquisition, or the “spin-in” of bio-defense technologies from small bio-technology firms. Empirical findings suggest that for small biotechnology R&D firms desiring to increase “spin-in” technology transfer, there appears to be two distinct and important influence groups—the scientific community within federal agencies, institutes, and centers, and the more managerial, policy-oriented decisions makers. We found that personal communication and networking appear to be the primary factor that leads to a successful technology transfer, however, the form and substance of personal communication and networking will differ between the two influence groups.

Perceptions of Self-Employment Among Mid-Career Executives in the People’s Republic of China

Policy makers in transitional economies have recognized the importance of self-employment as a mechanism for economic growth. Institutional support, however, lags this recognition. Individuals, therefore, must draw on their personal characteristics to venture into self-employment. We used a variety of individual characteristics to capture an important antecedent of the transition to self-employment using data from 133 mid-career Chinese executives. At the most aggregate level, hierarchical regression showed that views on self-employment are positively related to having a self-employed relative and openness to experience. A more refined analysis indicated that a variety of individual characteristics are related to perceptions of self-employment. Using these findings, we conclude that public policy will create an environment of inter-generational entrepreneurial activity. We argued, moreover, that the continued transition from state-owned enterprises (SOEs) to privately owned enterprises will require the identification, training, and development of a new breed of self-employed individual.