Drawing on entrepreneurial financing literature, we investigate how venture capital (VC) firms' investment horizons affect their ventures' product quality problems. We argue that when a VC firm has a short investment horizon, it may guide its portfolio companies to develop new products fast to increase the likelihood of successful exits. However, this deliberate effort may act as a double-edged sword for ventures. That is, VC firms' guidance on product commercialization could inadvertently expose ventures to product quality problems. Building on this notion, we suggest that ventures backed by VC firms with short investment horizons may experience more product quality problems than those backed by VC firms with long investment horizons. We further suggest that the effect of a VC firm's investment horizon on product quality problems is mitigated when the venture is invested by corporate VC investors but amplified when the venture develops complex products. We test our hypotheses using a dataset on product recalls of VC-backed ventures in the U.S. medical device industry.

中文翻译：

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风险投资期限对新产品开发的影响：来自医疗器械行业的证据


借鉴创业融资文献，我们研究了风险投资 （VC） 公司的投资期限如何影响其企业的产品质量问题。我们认为，当风险投资公司的投资期限较短时，它可能会引导其投资组合公司快速开发新产品，以增加成功退出的可能性。然而，这种刻意的努力可能会成为冒险的双刃剑。也就是说，风险投资公司对产品商业化的指导可能会无意中使企业面临产品质量问题。基于这一概念，我们认为，与投资期限较长的风险投资公司支持的风险投资公司支持的风险投资相比，可能会遇到更多的产品质量问题。我们进一步指出，当企业风险投资人投资企业时，风险投资公司的投资期限对产品质量问题的影响会减轻，但当企业开发复杂产品时，风险投资公司的投资期限会放大。我们使用美国医疗器械行业风险投资企业的产品召回数据集来检验我们的假设。