Product development in innovation-driven industries often fails. Although such failures cause new ventures to struggle to raise follow-on investments, some overcome this challenge. Why? Synthesizing insights from the research on signaling and social evaluation theory, we identify how certain resources can mitigate the risk of funding termination for new ventures despite product development failure. Through a longitudinal study of 254 venture capital-funded biotechnology ventures, we show that internal quality signals decrease in their effectiveness while industry endorsement signals increase in their effectiveness as quality signals over time. Our findings contribute to the literatures on entrepreneurial failure, entrepreneurial resource acquisition and signaling.

中文翻译：

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当失败并非致命时：检查产品开发失败后的风险资源获取


创新驱动型行业的产品开发常常失败。尽管此类失败导致新企业难以筹集后续投资，但有些企业克服了这一挑战。为什么？综合信号和社会评价理论研究的见解，我们确定了某些资源如何在产品开发失败的情况下减轻新企业融资终止的风险。通过对 254 家风险投资资助的生物技术企业的纵向研究，我们表明，随着时间的推移，内部质量信号的有效性会降低，而行业认可信号作为质量信号的有效性会随着时间的推移而增加。我们的研究结果为有关创业失败、创业资源获取和信号传递的文献做出了贡献。