From Start-up to Receiving Venture Capital: An Empirical Analysis of the Impact of Entrepreneurial Human Capital on Fundraising Pace in China

We conducted an empirical study of the impact of entrepreneurial human capital on the pace of the Chinese start-ups' receiving venture capital funding. Utilizing data from a sample of 230 Chinese start-up companies first incorporated between April 1998 and December 2006, and controlling for other factors related to specific Chinese venture capital industry environment, the paper examined the relationships between the number of months taken for the Chinese start-ups from initial incorporation to receiving their first round venture capital funding and the founding entrepreneurs' educational achievements, previous start-up experiences, and study or work experiences in Western countries. The result shows that an entrepreneur's previous start-up experiences and Western experiences have significant effects on the start-up company's pace of successfully receiving venture capital funding.