sale price of the innovation. We then show that incumbents can undertake early, preemptive, acquisitions to prevent such …, venture capitalists must be sufficiently more efficient in selecting innovation projects, otherwise preemptive acquisitions … aggressive development of a basic innovation by better informed venture-backed firms is used as a signaling device to enhance the …

capital-backed companies' superior long-run performance, stock markets react more negatively to their acquisitions than to … other private acquisitions. Moreover, venture capital intensive industries show higher patent count, but not higher total …, early-stage financing, and long-run performance of private acquisitions …