Capturing gazelles : features of high potential firms & new venture growth

Abstract

This paper investigates the characteristics of ventures which have the potential to reach high growth and compares this with ‘everyday’ new ventures. Findings of interest in this paper include: ? HP firms are characterised by higher human capital, are more likely to have a team of founders, are more likely to be product based. ? HP firms are more likely to achieve more extreme levels of growth (both positive and negative). ? HP ventures that make a loss are more likely to do so early in the venture process. Those that do hold on show that there can higher levels of loss made later on in firm development. HP firms have higher resource needs, in terms of seeking external finance, but are no more likely to receive external finance than regular firms.