Investor Transition Histories and the Timing of Follow-on Investor Entry in Early-Stage Healthcare Ventures (Research Square)

Summary

• The study examines 744 early-stage healthcare ventures entering private financing between 2011–2024.p.2
• In months 37–60, category-linked history is associated with higher entry rates with a hazard ratio of 1.888.p.2
• Standardized predictions for a common cohort indicate an 8.70 percentage-point difference in cumulative entry by 60 months between upper and lower quartiles of category history.p.2

Key insights

1. One standard deviation of category history is associated with 0.392 log points more focal capital, representing approximately 48%.p.17
2. The direct category-to-outside history hazard ratio contrast in months 1–12 favors outside-category history at 0.609.p.14
3. Standardized duration predictions for a common cohort project an 8.70 percentage-point difference in entry by 60 months between upper and lower quartiles of category history.p.2
4. Proportional hazard ratio estimates across the entire follow-up period are 1.094 for category history and 1.112 for outside history.p.16