The Financial Dynamics of University-Based Firms. The Effect of Different Financing Sources on the Firm Financial Performance
Sabrina Saccomandi

Abstract
The research aims to investigate the financing sourcing of the university-based firms in the form of university spin-off (USOs), namely the in-house finance, the debt finance and equity finance, jointly with their impact on the financial performance of USOs. A panel sample of 621 Italian USOs was examined over the period 2004–2013. The results show a positive but low effect of in-house finance on the financial performance of USOs, while debt finance has positive and relevant impact on the financial performance of USOs. Taking into account the effect of equity finance, the evidence is comparable to those associated with the effect of debt finance. However, the most significant impact is exercised by the institutional investors in the form of venture capital and private equity. This evidence shows that, in the entrepreneurial university context, these dedicated investors have the most beneficial and central role in improving the financial development of university-based firms.

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