Serial Entrepreneurs: Are They Better? - A View from Stanford University Alumni

Abstract

More than 2700 start-ups and founders affiliated with Stanford University are analyzed to study if serial entrepreneurs are more successful or not than novice entrepreneurs. The value creations are measured through the acquisition values or market capitalizations of companies and compared. The study also compares how serial entrepreneurs do in their new venture compared to the previous ones. As an interesting complement, the author also analyzes how novice and serial entrepreneurs access venture capital. It appears that serial entrepreneurs are not better than novice entrepreneurs in their new ventures, but were more successful with their first venture. Serial entrepreneurs also raise more money with their new ventures but less money with their first venture than novice entrepreneurs.

Keywords: entrepreneurship, founders, high-tech, innovation, Silicon Valley, Stanford Universiry, start-ups, venture capital, academic entrepreneurship

JEL Classification: M13