Youngkeun Choi, Assistant Professor, Division of Business Administration, College of Business, Sangmyung University, 20, Hongjimun 2-gil, Jongno-gu, Seoul 110-743, Korea, This email address is being protected from spambots. You need JavaScript enabled to view it..


In the entrepreneurship field, this study examines what kinds of external endorsements are helpful for venture capitals investment and the growth of new technology ventures in developing countries. This study uses the signalling theory and the methodologies of multiple regression and survival analysis with the panel data of the ventures in Korea. In the results, collaboration with business groups and certification of government are positively influential in attracting venture capitals’ investment, which accelerate the growth of new technology ventures. The practical implication for entrepreneurs is that they need to obtain the endorsement from business groups and governments strategically.

Keywords: new  technology  venture  creation,  small  business,  signalling  theory, business group, venture capital, Initial Public Offering.